RE: $5bil UK Covid test startup Spac listing8 Apr 2021 12:58
Dearest critics... I didn’t value lumiradx at 5x revenue, speak to Crystal and Bailey about it. I used £7 a test as it’s based on revenue. That’s a conservative figure when you consider private and foreign markets. The net profit amount once costs are accounted for aren’t being discussed as I was basing it on the revenue based valuation for lumiradx. I’d agree with £1.50, but as profit not revenue. Same answer for why 5x. It’s an illustration of the value based on similar criteria being applied. You could argue a blended average of £10 a test and 10x. It’s irrelevant. The conclusion remains the same, that even with conservative production, price and multipliers you end up multiples of the current share price. Excluding all the other many opportunities. Use £1.50 earnings and a PE of 10. Whatever floats your boat...