I know that the projections are optimistic and are contingent on...

I know that the projections are optimistic and are contingent on the company's ongoing success, but if we use Cochlear as a comparable company we can see that they aren't wild pie in the sky projections - if not in the near term, then at least over the next few year.

Cochlear is currently valued at c. $8B, up roughly 40 times from its listing market cap of c. $200M (about $80M below current Resapp market cap.).

Below I will list but a few reasons why I believe Resapp can match or even surpass Cochlear's valuation:

1) Valuations - for 2016 Cochlear's earnings were c. $189M (c. 16% of revenue for the year). This tells us a few things: Cochlear's earnings aren't actually that high, in fact they're probably far lower for a company valued at $8B than most of you realised (myself included) and that Cochlear's margins aren't that high. Resapp has arguably a far higher margin business model (happy to be corrected). These earnings targets aren't unrealistic, given....

2) Resapp has arguably a far larger scope and target market - affordable to basically everyone (discriminatory pricing could make this happen, more expensive in america, cheaper in third world countries, etc.), smartphone ownership is increasingly ubiquitous, whereas not many people can afford a cochlear implant. Furthermore there is a stigma attached to hearing issues, a lot of people suffer from deafness of some sort but choose to ignore it, whereas if you suspect you have pneumonia, I doubt you will hesitate to seek diagnosis.

3) Healthcare, particularly telehealth is starting to boom big time - Apple has a whole division dedicated to eHealth, Samsung has recently announced a new integrated health app developed by AmWell on their new OS that allows video consultations with doctors... Medical professionals are also seemingly more open minded than ever, e.g. increasing uptake/acceptance of medical marijuana.

4) Companies are realising their value far quicker than ever before - tech has changed the way companies are valued. Uptake of a good idea is fast and furious, e.g. Uber, snapchat, etc. The market is increasingly valuing companies based on potential and rapid uptake, Resapp falls into this new-age category. Cochlear's growth in market cap. was slow and steady, Resapps won't be - it will be 0-100 or a stalled start.

5) Currently the app is only focusing on diagnosing a few health issues, but there is significant scope for this list to be expanded. If, and its a huge if, the app eventually could diagnose early stage lung cancer (plausible), myself and every single person I know wouldn't hesitate to cough into the app every single day to ensure peace of mind - imagine the uptake and earnings if this became a reality...


These are just a few of the reasons that spring to mind, feel free to add to the list or critique anything i have outlined.

Happy investing!!