with all due respect, that is a very poor assessment of CAT and business more broadly. By way of example, if revenue compounded at 15% pa for 10 years it would 4x from here reaching 400m. Given the high (70%) gross margins, and natural operating leverage, you'd be looking at about a 35-40% EBITDA margin. On 400m, that is about 150m of EBITDA. So a 4x in revenue, would equal a 10x uplift in EBITDA. 150m of EBITDA would mean the equity would trade at about 2.5bn.
The point is, a 4x uplift in revenue would likely see a ~10x uplift in the share price from here. There is more than enough room to grow the business and the valuation as FAR from expensive.
with all due respect, that is a very poor assessment of CAT and...
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Last
$2.01 |
Change
0.130(6.91%) |
Mkt cap ! $525.7M | |||
| Open | High | Low | Value | Volume |
| $1.89 | $2.01 | $1.87 | $3.429M | 1.779M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 2469 | $2.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.01 | 616 | 1 |
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| Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
| CAT (ASX) Chart |