CBD Life Sciences Inc (CBDLD)

[QTRADERQ]

OCSY short-term valuation should be .013. HERE'S WHY...

OCSY has two revenue sources
1) The initial software installation; and
2) The recurring revenue where software is licensed by the hospital or doctor's office on a subscription basis and is centrally hosted by OCSY. This is commonly referred to as a "Software as a Service" (SaaS) business model.



With OCSY providing revenue projections of $2,750,000, $7,250,000 and $11,750,000 (in Years 1, 2, and 3) from the Fall 2017 Investor Presentation (above) ... we can calculate a projected revenue growth rate of 100%+ from Year 1 to Year 3. Revenue's doubling on average for three years.
https://www.optiumcyber.com/uploads/1/1/0/5/110574575/ocsi_-_investor_presentation_2017.10.09.pdf

Valuation
Year 1 - $2.75 mil sales * 12x multiple = 33 mil MC/ 2.5 bil OS = .013
Year 2 - $7.25 mil sales * 10x multiple = 73 mil MC/ 2.5 bil OS = .029
Year 3 - $11.75 mil sales * 8x multiple = 94 mil MC/ 2.5 bil OS = .038

Revenue Multiples - from the table below
Publicly-held companies like $OCSY with SaaS recurring revenue growth rates of 100%+ are historically valued at 8x -10x revenue multiples (Note: a higher revenue multiple of 12x is reasonable in Year 1 since the projected growth rate is 163%. But in Years 2 & 3 the revenue multiple decreases to 8x -10x as the growth rate normalizes at 50% - 60%.)



Also of importance to note is:
1) As Truenorth2016 posted, hackers are Targeting Hospitals and Medical devices for Cyber Crime.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=135365257

2) Gross margins for SaaS companies are typically extremely high at 75% -90% and lastly...

3) ... The addressable market for cyber crime damages to the health care and medical device industry is predicted to exceed $6 trillion annually by 2021 (Source: OCSY Fall 2017 Investor Presentation.)