POTENTIAL - HUGE24 Oct 2023 14:11
MASSIVE POTENTIAL. REPOSTING for newbs, board clogging and why this is just starting to re-rate.
70-80% Profit is pretty standard for SaaS. Most of the cost of SaaS companies that have lower profits is because they have huge operational costs around people, offices etc. Nothing we have to worry about.
And remember companies that are profitable in SaaS are getting a multiple of 15-20x, I only used 8x in my calcs.
SaaS Software is usually 70-80% profit, I know because I work in the field. I'll use 70% for calcs for 2022 figures in the sharetalk segment
Very conservative valuations
5% commission = $112.9m = x0.7 x 8 = $632m = £505m mcap = 43.6p
10% commission = $225.8m = x0.7 x 8 = $1264m = £1010m mcap = 87.2p
15% commission = $338.7m = x0.7 x 8 = $1892m = £1515m mcap = 130.8p
Profitable SaaS companies are trading at 15-20x multiples. So using 8 is very conservative.
RE-RATING nicely.