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15/03/19
09:09
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Originally posted by crystalblue:
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I was looking at some simple comparison figures between Afterpay Touch (APT) & Nearmap (NEA) this morning at au.investing.com and wanted to share some findings. I've compared Nearmap to Afterpay Touch because both are on a RAPID GROWTH trajectory, hitting it BIG in the USA, both companies are yet to be profitable, and both have a "BlueSky" potential and hence are very difficult to valuate (especially on the upside). The only issue with Afterpay Touch is that there are now a few "Me Too" competitors such as ZIP and Splitit coming into the market, whereas Nearmap really do not face such competitive issues. APT last traded at $20.80 APT Market Cap is $4.95 Billion APT Price to Sales ratio is 25.43 https://au.investing.com/equities/afterpay-holdings-ltd-ratios NEA last traded at $2.98 APT Market Cap is $1.32 Billion NEA Price to Sales ratio is 20.3 https://au.investing.com/equities/nearmap-fpo-ratios So if Nearmap was to trade at a similar Price to Sales ratio of 25.43 then we will arrive at a share price of close to $3.73 for NEA. Being (25.43 / 20.3) * $2.98 = $3.73.
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I see NEA as a much lower risk prospect than APT. NEA is a service that reduces client costs whereas APT increases them (fees higher than credit card). NEA also has a clear edge on its competitors whereas with APT I am not so sure.