RE: Sp1 Aug 2019 20:10
It is a tough one, because valuation of companies is usually a multiple of earnings, there are very little ftse 100 companies trading at less than 10 times earnings and some much more. But this is not an established company with years of figures for analysts to look over it is a new company that has completely changed the way it operates and earns money with a new team running it.
Then we have the niche factor, the only commercially available element, the goodwill associated with rubbing shoulders with blue chips, top 10s etc. The tech, the science, the fact it is run by owners, all of this contribute but they do not give us a way of sticking a number on it.
We could go on today's value based on profit currently generated, assets etc and give no value to anything else or we could factor in the potential growth and intellectual property. For me most of AIM is valued on future potential and knowing it is not a lifestyle company counts for a lot.
I think we ask ourselves if GB was to sell it what price would it be sold today and what price in 10 years and that is where we are.