Company Report
Last edited 3 months ago
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#Financials
Last edited 3 months ago

I’ve arrived at the conclusion that the current sales multiple of 6 times only makes sense if Audinate develops as software company rather than a manufacturer. So the investment case rests on whether their customers will pay enough for their software not on product sales. It could happen, but we’re in really early days. Without software the case could be made that they should be on half the sales multiple they’re on currently or even less. I get the monopolistic forces as far as product dominance, but this still relies on the overall pie growing quickly also which is possible but no certainty