Pinned valuation:
Using Revenue Target of 300-500m by 2028 as mentioned by the company.
Looking at 2023 margins of 9.3m NPAT off 55m Revenue = ~16% and extrapolating out to the targeted revenue.
2028 NPAT = 48m (300m revenue)
= 700m shares / 48m
= 6.9c eps
@ PE 30 = $2.07
@ PE 40 = $2.76
@ PE 50 = $3.45
2028 NPAT = 80m (500m revenue)
= 700m shares / 80m
= 11.4c eps
@ PE 30 = 3.42
@ PE 40 = 4.56
@ PE 50 = 5.70
Investors can decide on what discount you wish to assign today.
I am using PE 50 at 300m which so happens to be similar to PE 30 at 500m so let’s say 3.40 and discounted back at 10% per annum to give me ~2.00 today.
I think that’s right.
Anyway thought I would give this a go to give myself a sense of a valuation.
DRO broker report
https://www.asx.com.au/content/dam/asx/broker-reports/2024/dro-initiation-sequoia-180624.pdf
Sequoia Initiation NOT RATED
A couple weeks old, but just came into my inbox through weekly brokers report email.
delete if already posted.
@NewbieHK I am definitely suffering jealousy on this one from not buying at $0.30.
I would be cautious on the shares on issue though.
Currently 762M and over the last 4 years growing at 26% per year. SOI could easily double+ over the next four years impacting your valuation.