We have created and updated our Mid-Sized, Slow Growth (SMB Focused) SaaS Comps table while launching coverage of ZEN in our Perspectec General Portfolio. Our target prices are based on a multiple regression model with a multiple r-squared of over 0.65 and r-squared of 0.90. We expect to improve this model moving forward. We do not use targets for Hubspot, RingCentral or Wix at the moment as we believe there are more accurate methods that can be a driver to their stock prices. We believe these metrics are reasonable in the absence of earnings due to the higher likelihood of these […]
Comps Table
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With this note we are updating our relative SaaS valuation on Netflix. Based on its prior trading history, we continue to believe Netflix should trade on a SaaS metrics basis. This involves metrics such as annual churn rate, customer lifetime value (CLTV) and customer growth costs (CGC) rather than on a traditional P/E or EV/EBITDA basis. Earlier this week we discussed Netflix’s Q3/17 results while updating our price target of $241. We also re-iterated our buy rating on the stock. Increasing Customer Lifetime Value – Q2 vs. Q3: We base our valuation on a CLTV / Trailing 12-month CGC. The CLTV is the gross margin the […]
This version of our comparable table compares only public cannabis producers in Canada who have produced marijuana and have a net cash balance in the millions. We compare a number of non-financial metrics such as production, forecasted future production, kilograms sold, capacity and percentage of oil sales. We also look at traditional financial figures such as Bloomberg consensus EV/EBITDA estimates for fiscal 2017, 2018, 2019 and sometimes 2020 as well as our estimates for Aphria, Canopy Growth and MedReleaf. Important Disclosures and Disclaimer This publication is produced by Perspectec Inc. This publication and the contents hereof are intended for […]