Better Analysis? 2A few years ago I read Benjamin Graham's The Intelligent Investor. To make money in the stock market, one simple axiom he proposed was to buy a dollar's worth of a company for less than a dollar. Sangoma now has a P/B ratio of .43 so it would appear to be a perfect candidate to put Graham's axiom to work given a long enough time horizon. Notwithstanding the current poor market conditions for small-cap tech stocks, would you agree that today an investor can buy a dollar's worth of Sangoma for 43 cents? We would not necessarily frame it in this way. It is also important to consider that over $500M of STC's assets is from goodwill and intangible assets. The P/B ratio tends to be more applicable to asset-focused and or asset-heavy companies. STC traded at nearly 4x P/B in February 2021 and at 0.4x today. We would not rely on it solely as a way to value the company and would prefer to focus on an earnings or cash flow multiple. Currently, the stock trades at 5.7x EV/EBITDA which is at the lower end of its history while expecting strong double-digit growth. We would consider this to be attractive at these levels.
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