I think anotherissue continuing to drive the ZIP valuation gap...

I think anotherissue continuing to drive the ZIP valuation gap vs peers is the market is yetto appreciate the Quadpay acquisition earnings. You can see by the valuationmultiples being quoted in the press yesterday it continues to exclude Quadpays.

The AFR referredto ZIP having a 34x revenue multiple. Although this is still way lower than Zip’speers, the real actual current multiple is even far lower than this.

For example:

- Theway the 34x is derived per this current article using simple round numbers isbased on the FY19 actuals for ANZ only, so 4bn market cap + $1bn debt = $5bn EV/ FY19 ANZ revenue ~$150m = 34x. So clearly the earnings are excluding QuadPay,yet incorrectly the additional dilution of shares for acquisition are included beingthe 4bn market cap / 550m shares = ~$7.30 current share price. This is clearly incorrectas in valuation we should be looking at forward earnings as we are not tryingto value or going to get rewarded for yesterday

- Inmy view, the real adjusted multiple is more like a 12x, which includes both ANZ + USArevenue, so 4bn market cap + $1bn debt = $5bn EV / Q2 FY21 ANZ + US revenue annualised(~$100 x 4 qtrs) ~$400m = 12x.

So, on a comparablepeer’s basis, ZIP is being undervalued not only just on a multiple basis but alsothe revenue they continue to apply the multiple to. Being conservative onpotential ZIP’s FY21 actual revenue is $400m and applying a broad range of 40 – 80x peer multiplesper this AFR article for APT and Affirm, that gives ZIP are rough market cap todayof $16b – $30bn, or a current today share price of $30 - $60 a share...

AFR Article
https://www.copyright link/chanticleer/doubts-about-cba-s-2b-klarna-bonanza-20210128-p56xfg