Looks like the IPO managers managed to offload Nuix at an incredible price relative to its absolute value.
Underlying company looks good to me, but as Warren Buffet says: Price is what you pay, value is what you get.
It looks like subscribers certainly paid a very premium price relative to the value of the business.
Based on management's revised FY21 forecasts:
Underlying growth has slowed right down to 10-15%, yet the underlying business is being sold at:
*a revenue multiple of 7 times
*EBITDA multiple of 20 times
* Adjusted Net Profit multiple of 62 times.
All these metrics seem too high relative to potential growth of 10-15% p.a
Either FY22 has to prove that growth rates can be sped up, or else I think the share price will continue to trend down until the share price approaches the underlying value of the company.
Absolute lemon, because IPO share holders where sold a decent company but at such a premium that their capital wealth will be inhibited for many years to come due to the price paid.
One for the watchlists.
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Last
$6.25 |
Change
0.190(3.14%) |
Mkt cap ! $2.053B |
Open | High | Low | Value | Volume |
$6.20 | $6.39 | $6.19 | $12.47M | 1.982M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 18902 | $6.25 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.28 | 21 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 18902 | 6.250 |
1 | 3204 | 6.230 |
2 | 8689 | 6.210 |
5 | 16493 | 6.200 |
2 | 37459 | 6.190 |
Price($) | Vol. | No. |
---|---|---|
6.280 | 21 | 1 |
6.290 | 3493 | 2 |
6.300 | 12181 | 2 |
6.320 | 8189 | 1 |
6.330 | 8189 | 1 |
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