Monday, March 27, 2017 11:06:17 PM
As usual, I will give my opinion on valuations. The following is with my own assumptions and includes only the information which we currently know (obviously the upside potential could be more assuming a substantial event occurs that would materially increase growth or vice versa)
I would share my spreadsheet but since its harder to do on this board here are the assumptions used:
Next 12-month growth in revenue: 35% ~14M in 2017
Gross margins: 50% ~ 7.03M
SG&A as a % of revenue 31.5% ~ 4.42M
D&A and other: 600k (close to the current year's amount)
EBITDA:2.601M
NI:2M
F.d. share Count: 43,867,228
Assumed cash balance in 12 months:~3M$ (1.6M currently plus a conservative additive cash flow of 1.4M)
Assumed LT debt:0$
**all multiples come from S&P capitalIQ from companies in a similar industry.
Method 1 - EV/Sales:
Mean EV/Sales Multiple:5.8x
14M*5.8=EV of 81.56M add back cash less debt=equity value of 84.5M/43.8M shares gives a share value of 1.93$/share
This is a typical metric for high growth tech companies and often used for takeover metrics.
Method 2 - EV/EBITDA:
Mean EV/EBITDA Multiple:17.6x
2.6M*17.6=EV of 45.787M add back cash less debt=48.8M/43.8M= 1.11$ per share
Typically a common method used to value companies with stable EBITDA margins and reliable earnings. Often a conservative way of valuing an entity.
Method 3 - EV/Earnings (or P/E):
Believe it or not the average P/E in this sector is around 35x - i'll use 25 x to be extra conservative (check out Visa, MC, GPN, VNTV to name a few)
NI of 2M*x25=50M EV add cash = 53M/43.8M shares= 1.21$/share
As you can see using the mean multiples of the sector, the expected growth, and assumed margins, the valuation ranges from 1.11$/share to 1.93$/share for the next 12 months.We can clearly see that if the company continues to execute like this over the next 3 years the effects would compound and you could easily find yourself with a stock between 3-5$/share. I will re-assess again after Q1 results are released. I am also holding on to all my shares - the story is only starting to unfold.
Best of luck!
E.
Recent PAYS News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/24/2024 01:15:04 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/18/2024 12:47:12 AM
- Form S-8 POS - Securities to be offered to employees in employee benefit plans, post-effective amendments • Edgar (US Regulatory) • 08/08/2024 08:46:17 PM
- Paysign, Inc. to Participate in the August 2024 Sidoti Micro-Cap Virtual Conference • Business Wire • 08/08/2024 08:15:00 PM
- Paysign, Inc. to Present at the Oppenheimer Technology, Internet & Communications Conference • Business Wire • 08/07/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/07/2024 01:16:39 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/07/2024 01:16:23 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/07/2024 01:16:08 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/07/2024 01:15:51 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/07/2024 01:15:32 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/03/2024 01:16:19 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/03/2024 01:16:01 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/03/2024 01:15:46 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/03/2024 01:15:32 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/03/2024 01:15:16 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 11:47:09 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/31/2024 08:02:32 PM
- Paysign, Inc. Reports Second Quarter 2024 Financial Results • Business Wire • 07/31/2024 08:02:00 PM
- Paysign to Host Second Quarter 2024 Earnings Call • Business Wire • 07/09/2024 08:30:00 PM
- Paysign, Inc. to Participate in the 2024 Maxim Fintech Virtual Symposium, June 25 • Business Wire • 06/20/2024 08:30:00 PM
- Paysign, Inc. to Participate in the 2024 iAccess Alpha Buyside Best Ideas Summer Conference • Business Wire • 06/18/2024 08:30:00 PM
- Paysign, Inc. to Participate in the June 2024 Sidoti Small-Cap Virtual Investor Conference • Business Wire • 06/06/2024 08:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 06:49:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 06:47:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/15/2024 10:19:59 PM
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM