After a volatile IPO, $ESTW.V has been starting to show stability at its current levels. Additionally, they were able to virtually open the TSXV today.
A pretty great way to start the day: https://youtu.be/DqSekPIhvgU
Besides the volatile past few days, $ESTW (EasTower Wireless) is an impressive company in a rapidly growing industry sector. They focus on the installation and maintenance of 5G, 4G, and other small cell-tower deployments. The 5G market in particular is something to pay attention to. Companies like Verizon and AT&T are expected to pour hundreds of billions into developing the proper infrastructure needed for 5G across the US. To do this, they need the assistance of companies like $ESTW.
But why 5G?
- Performance: 10x decrease in latency, 3x increase in spectrum efficiency, and a 10x experienced throughput.
- Capacity: 5G has a 100x traffic capacity relative to 4G.
- The shift toward a more online/digital life has increased the need for faster connectivity across the world.
$ESTW is perfectly positioned in the US to take advantage of this growth. For example, their Tiger Team has already serviced over 500 sites to date. The business operations are currently in Florida with plans to expand into 11 surrounding states in the next 24 months and across the rest of the US after that. Now, this growth also is reflected in their revenue projections. $3M for 2022, growing to $11M in revenue by 2023. Considering the high-growth potential and the $10.5M market cap, the revenue multiples show that this is severely undervalued at these levels compared to companies like $MSFT which currently has a 10x revenue to valuation multiple with lower projected growth.