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08/09/18
21:38
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Originally posted by Homer
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This is a pretty good estimation of future value in my opinion for that level of ARR. A high growth company, investing along the way for future growth, can be put on a revenue multiple. LiveTiles has traded historically on a revenue multiple in the range of 15-20x. It has traded more closely to 15x in the past, but if it can demonstrate continued high growth rates then perhaps this should be closer to 20x.
Working off $113m ARR gives the valuation range $1.695bn (@15x revenue) and $2.26bn (@20x revenue). Working off 550.7m shares on issue gives a valuation range of $3.08 to $4.10 per share.
To be clear, this assumes no more capital raisings in the intervening period.
I'll take that.
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Isn't 'revenue' you specified in deriving the market cap (@15x revenue or @20x revenue) supposed to be earning (net profit) ? The required revenue would be much higher.