Now that Zomedica has decided to build its own direct sales force, it should be able to develop its sales from the ground up. Analysts now foresee ZOM reaching 2021 sales of $4.4 million as well as $15.2 million by 2022.
Given that Zomedica now has a market value of $1.05 million, this puts the stock on a forward price-sales (P/S) multiple of 69.07 times using the revenue projection for 2022. However, on Feb. 16, the company announced it had raised $200 million in a public offering of shares at $1.90.
In addition, Zomedica said in its January shareholder letter that it had received $90 million in warrant exercise proceeds. That means it now has $290 million in cash, before this quarter’s cash burn.
That means that the net market cap, after deducting cash, is just $760 million, before cash burn. This lowers the valuation to 50 times P/S for 2022. However, the company also believes it will be cash-flow positive by 2023. This implies that revenue will likely double to at least $30 million in 2023. Using that estimate, ZOM stock will potentially have a forward P/S ratio of 25.3 times by 2023.
News 
Market Data 
Discover 
