I think one of their biggest problems causing the undervaluation is simply the nature of their business. They have to win contracts in order to get revenue, and they probably won, what, 20 contracts last year? The problem is any variation in those contracts and Virtra could end up with a year of $5m in revenue instead of $20m. Investors don't like that kind of lumpiness and risk. So all of our estimates of 2016 revenue, earnings, PE values, etc., are complete speculation which have no basis. This isn't an energy drink where last year 40,000,000 people drank it and this year 50,000,000 people will. These are simulators where maybe 20 agencies chose to purchase them last year, maybe 10, maybe 50 will purchase them next year. Their revenue is growing, yes. But take away that single $7m contract last year and what would Virtra have done? What would you value Virtra at if they only had $7m in revenue last year instead of 13m?
The one good thing about each passing year is that Virtra gets more simulators out there and thus will receive service revenue (warranties, upgrades, etc.). That is a much more consistent revenue stream than selling simulators. Unfortunately it's also a much smaller part of their overall revenue.
News 
Market Data 
Discover 
