I agree with @Veecat. Up to now, Beam has been making quite...

I agree with @Veecat. Up to now, Beam has been making quite small profits on equipment sales, and these are very low margin, particularly for Zoleo (which is intentional in order to encourage sales). Companies on low-margin, non-recurring sales are not valued on multiples of revenue, but on profit and growth rates, and even then on sometimes quite low P/E. Beam has been like this for many years and this is how the market still perceives it.

Beam is a classic transition company, changing rapidly from the current low quality "small profits from low-margin, one-off hardware sales" into a completely different, much higher quality business which will have:

• a vast majority of revenue which is recurring (extremely high margins from recurring Royalties on subscriptions, and lower but growing margins from JV recurring revenues after they pay out the royalties.
• a small minority of legacy type profits on equipment sales.
• very high revenue and profit growth rates.
• expanding markets in regions, products and services.

IMO the rewards will come to those who are first to position themselves for this fundamental transition in Beam's business model, profit quality and growth. With such a small market cap, Beam is not widely known or followed, so very few investors see this transition happening. So, I think the re-rating will happen gradually as more investors come to understand the changes happening and start to see proof of them being reported to market.

I normally don't try to suggest what the share price might be in the future; I concentrate on where I think revenue and profits are likely to be in the next couple of years, which was the point of my earlier posts to which @Chuxa refers. Then anyone can do their own valuation. Suffice it to say though, if my previous posts are anywhere near to what happens, a Beam FY23 NPAT of around $7M of which around $6M should be from recurring revenues, would be highly valued. I don't know many profitable companies with strongly growing recurring revenue and a best-in-world offering having a P/E ratio less than 20. Even if we only get a P/E of 10 for the approx $6M of ARR profits over the next couple of years that alone would justify a $60M market cap. It might take a much higher profit and market cap for Beam to reach a P/E of 20 or more, but I think it will happen, and on a much higher profit than $6M. I am invested for the medium term for that very outcome.

Good luck to all; the above is my opinion and not advice - DYOR.