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
$2.98 |
Change
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Mkt cap ! $964.1M |
Open | High | Low | Value | Volume |
$3.00 | $3.07 | $2.96 | $1.296M | 429.9K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 24999 | $2.98 |
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Price($) | Vol. | No. |
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1 | 3400 | 2.930 |
5 | 13000 | 2.900 |
1 | 500 | 2.890 |
1 | 100 | 2.870 |
Price($) | Vol. | No. |
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2.900 | 1000 | 1 |
2.990 | 190 | 1 |
3.020 | 1878 | 1 |
3.030 | 25000 | 1 |
3.040 | 1323 | 1 |
Last trade - 16.10pm 23/05/2024 (20 minute delay) ? |
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Last
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Change
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Last updated 15.59pm 23/05/2024 ? |
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