illumin Holdings Inc T.ILLM

The Way Ahead

[retiredcf]

Like many growth tech companies with high valuations, AT has suffered from the prospect of higher interest rates. Much of the decline is market related in our view so we think that once markets have digested interest rate hike expectations, things should start to improve. The valuation is very attractive compared to peers (3x sales vs 25x sales for larger peers). AT continues to show good underlying growth but we would be fine waiting for momentum to improve before adding to a position. 

This was the response from 5iResearch when asked about AT's current share price. GLTA

 

[growthnprosper]

3X Sales is extremely low for AT valuation compared to other stocks, so  good time to buy before earnings announced early Nov .

[growthnprosper]

At 25x sales like peers ,At would be closer to just under $50 then ?

[Torontojay]

25 times sales is a bit of a stretch for any company and they would need to execute to perfection for many many years. Just think for a sec that a company with the same PE ratio might be considered not cheap. Even if the company can produce ebitda margins of 25% then you're looking at a price to ebitda multiple of 100 times! Perhaps The Trade Desk can pull this one off but I'd rather

[growthnprosper]

Current AT prices are ridiculouly low and eveyone knows it!

[retiredcf]

Faced more questions this morning. This time, notwithstanding their "would wait before adding" comment, they indicated that they did in fact add more AT to their model growth portfolio last month at higher prices. GLTA