The 1 problem I have with your projections is your P/E. E = Earnings. You have based your E on Revenues. VPC is a long, long way from achieving Earnings aka NPAT. They will be cash flow positive first, then afterwards achieve Earnings.
When looking at a valuation of fast growing tech, a Revenue Multiplier is used. When XRO was going through its big SP growth, it was based on a Revenue Multiplier of 15-20x. Basically everything VPC does is from the XRO playbook such as ADP marketplace. The difference was ADP was a perfect fit for XRO who needed local payroll affiliations. The local payroll companies were looking for a cloud-based accounting package. A match made in heaven. I am unsure if there is a similar prospective match on ADP for VPC.
Rusty gets his famous/infamous $billion valuation from XRO multipliers. He is saying the last Milestone Target of $50m revenue * 20. This was one of the main reasons why I bought in and equally why I laughed hardest at the meme.
I thought it was an extremely ballsy target for Performance Shares. However, Rusty has now been "given" additional low-ball performance targets and options. Big red flag that even Rusty has lost faith in his ballsy target.
VPC Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
