When using TTM sales for calculating the P/S ratio (Valuation) I found an average of above 20X for the peers. This includes 8 other companies: TDOC, LVGO, GDRX, OTRK, ONEM, HCAT and 2 canadian WLYYF and DOCRF. The group hast market caps ranging from $20B to $90M.
I found that the current average P/S, including CVLB, is above 20.
HIMS (Not included above) is being valued above 10X.
Anf for current P/S valuations the street uses shares outstanding and NOT fully diluted shares. The FD shares are used when there is a takeover bid or merger in play. Unless I am mistaken.
CVLB TTM (current and known) sales is $28.5MM.
IMHO the stock should trade at a range between 13 to 17 P/S (conservative) in a few months when the market becomes aware of it's potential and the fiscal year report comes out. hopefully we will be in the Nasdaq by then with great financing for rapid expansion.
PS: The number for P/S that I found for this industry peer average before the pandemic is 17. Just remember that few companies have a great and sustainable gross margin like CVLB. And all this cash and be recycled into new subscribers.
The company can turn profitable any day if management reduces the spend in S&M. But that will not be the strategy for a while. That cash generates more in the acquisitions of new subscribers right now. The unit ecomimics are great as far as I understand so reinvesting that cash is getting the green light.
GL and do your own check into these other companies.
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