The Greater Question ..Is how do value these companies.. what is the growth curve? It seems with most tech companies the value is between 3and4 times revenue. If we were doing 5mill by years end and valued at the industry average of 3 if not 4 times revenue that would provide a market cap of aprox 18 mill. The present Outstanding share count is 46mill and about to go up by 20mil shares sadly. So to put this into perspective we will use 66mill shares and revenue of 18mill for a buyout. This alone gives us a present value of 27cts.. So with Revenues of 5mill and even 3times Revenue we are valued at 23cts... So lots of room here for good upside..
The average mid-market software company was valued at 4.0 times LTM (Latest 12 Months) revenues and 22.2 times LTM EBITDA.
The average IT solutions company was valued at 3.3 times LTM revenues and 18.8 times LTM EBITDA.