A different way of valuing swt - which reminds me of onetel - building in some growth and using 15000 as the subscriber base, at a market cap of $19m as currently, that is $1266 per subscriber!
Assuming of course that there is no other business apart from adsl. High PE's are a bit dangerous because the business is the ultimate commodity type business, eg new player enters market next year and does the same business model but reduces profit by 5 or 10 %, and guess what you either lose subscribers fast or you match pricing, profit slumps (relatively speaking).
The main problem is cost of entry -it is low and the product users are not brand loyal, and churn is cheap and easy. I'd rather have BP's subcriber base - low IT educated - brand loyal- and Very profitable.
