Putting aside the when and if SAS can pull this off I am curious why people on here are so obsessed about revenue already.
It just seems to me that if we use a discount casflow evaluation (provided by the APP report) and then also now start using some sort of revenue based calculation then there are going to be conflicts in evaluating this.
If we use EV/R at this moment in time and assuming that SAS gets max revenue from the test satellites. $160M Mc + 0 debt - $9M cash / $3M max rev gives a multiple of 50X
The APP report gives a target of 45c. Which means we will trade a 250X multiple.
It just seems the wrong time to worry about these revenue based calculations. Surely using the DCF method is more appropriate now as it points to potential as opposed to a skewed reality that the 3D revenue provides.
Rather use revenue based calculations when real revenue is being earned by the actual product.
Thoughts?
Putting aside the when and if SAS can pull this off I am curious...
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