Ultimate Guide to SBW, page-9

The final thing I would like to add (if you have in fact read my other two posts which are worth reading) is coming to an appropriate valuation. This is the tricky part, especially with microcap stocks which are valued on their future potential.

We do know that there are medium to high barriers to entry, and that SBW have accumulated a competitive edge with their technology iterated over several decades, with certain patents in place.

We also know that the opportunity is global in scope with a huge total addressable market (TAM) - and that traditional retail is ripe for disruption.



Remember when there were more human checkout lanes at supermarkets than self-checkout? Now it's the other way around. We are even starting to see self-checkout in Bunnings. The trend for autonomous and friction-less shopping - what some term "Grab & Go" - was inevitable. And coronavirus has only accelerated this trend.

https://www.ibtimes.com/5-tech-tren...-end-year-result-coronavirus-pandemic-3011819
_{5 Tech Trends Expected To Shape Retail Through The End Of The Year As Result Of The Coronavirus Pandemic}

“Retailers and brands will need to collaborate more than ever with technology startups to futureproof their businesses and be better equipped to meet fast-changing consumer demand and behavior,” Coresight said.

Coresight reported the pandemic has piqued consumer interest in cashierless models.

Technology firm Shekel Brainweigh said 87% of respondents to its global consumer survey indicated they would choose stores with self-checkout over those with only cashier lines.
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So if you ask me, when you consider all the different technology projects SBW are working on - most of which we now know are "close to commercialisation*" - is 45m AUD market cap really fair value for something that has the potential to roll out globally? I personally think it is still undervalued, but the market will eventually decide one way or the other.

Even at 70 cents per share, the implied market cap with only 139 million shares on issue is about ~97 million AUD. Which is still less than 100m. And still quite low when you compare SBW's proven technology and revenue to a lot of unproven technology companies with no real customers whatsoever. And extremely low when you compare SBW's market cap to their collaborative partner Hitachi (ranked 38th in the 2012 Fortune Global 500).

Even at 32 cents as it currently stands, we are still below the IPO price when SBW first listed at 35 cents per share. How does that make any sense?

_{(*See the company response here on state of commercialisation: https://hotcopper.com.au/posts/47280758/single)[/sub]}