Woodbrook Group Holdings Inc (WDBG)

[Sibware]

NHPI:2 ways to evaluate an AUM ticker:

Revenues from fees, yes

But the value of assets is there also, and brings much more value than the revenues....

No PE ratio on the OTC, doh
As for AUM on the OTC?
Never seen any ticker like NHPI b4

But will not stay on the OTC for long, with that kind of AUM

From another source, but those metrics cannot applied to OTC
Insiders will push it even when still on the OTC to get a better leverage when going NAZ:

Price/Earnings, EV/EBITDA and EV/Assets Under Management

Asset managers are usually valued on a Price/Earnings, EV/EBITDA and EV/AUM basis. As a secondary metric, large asset managers with diversified businesses may also be looked at from a free cash flow yield perspective.

Price/earnings is the most pure and takes into account the leverage of the company. Price/Earnings is a good representation of what flows through to the shareholder.

EV/EBITDA is pre-leverage and is also considered by most equity analysts – but it needs to be adjusted for timing for deferred commissions and sales charges as they are real costs to the firm despite possibly not showing up in the current valuation period. As such, analysts will smooth these data.

EV/AUM is nice in theory, but can only be used to compare against close peers in practice. As an illustration, a passive asset manager may have a very large AUM, but the fees that they earn on their product may be 10x lower than that of an equity mutual fund firm. The type of client that the firm services will also affect this metric – a firm that deals primarily with retail clients will be charge much larger fees on their AUM than a firm that deals with institutional clients. This metric is more widely used by financial institutions group investment bankers or the corporate development teams of banks for precedent transactions analysis.

Asset management valuation primarily focuses on Assets Under Management (AUM). A larger AUM means a larger fee base which means more revenues while incremental expenses do not scale as much. Accordingly, AUM growth is imperative for share price appreciation. Declining AUM is negative for financial stocks.

However, the quality of AUM growth is even more important. AUM can grow organically because of 1) rising markets boosting the value of the assets managed – which can be looked at as beta exposure; 2) the outperformance of the asset manager versus its benchmark – which can be looked at as alpha generated and 3) net inflows via more investors giving the asset manager their money.