Agree. Surely, the price appreciation will start to come once interest rates begin to drop and the risk appetite for VC increases allowing money to flow back into the area. Combine that with one or two of their non-listed investments coming to market and a re-rate will hopefully forthcoming.

By the nature of their business, I find it very hard to come up with a valuation for Bailador. In such circumstances, I then turn to asking myself the following:

• Will they be around in 10 years?
• Are they likely to become a larger company in that timeframe?
• What is their business model (i.e. is it working, and has it worked over a substantial period of time)?
• Do they generate free cash flow?
• Are the founders heavily involved in the day-to-day running of the company and materially invested in the company?
• Is their current valuation underestimated by the market?
• Are they doing what they say they will do and doing it well?

I am inclined to the view that there are 7 "yes" responses for Bailador, and therefore, I am bullish on the long-term success of the company, and let's face it, that is the only timeframe that matters.

Disc: I hold IRL, currently ~4% of total holdings.

I don't hold and I have not done the research, but perhaps the only thing I'd be looking at in finishing the valuation is how much you allow for fees and costs. Just a quick glance at last year's annual report looks like they spent about A$7m on management fees and running costs. Before arriving at a valuation I would be looking to normalise and then value that cost over future years. My heuristic is usually to multiply by 10, so a net negative of A$70m, which is something like 50c per share.

Like I said haven't done the work, so the 50cps could be way out for bailador, but just something to consider when valuing these businesses based on their assets.