RE:RE:Current price target (fiscal 2020) Motorola solutions has an enterprise value to sales ratio of about 4.5. In fact many hardware/software companies have ratios in excess of this number. If we value Gatekeeper using Motorola's EV/ sales metric then we can approximate Gatekeepers value using Motorola as an industry average. I expect Gatekeeper will have sales of 19 million for fiscal 2020. Gatekeepers enterprise value should therefore be 85.5 million cad. They are currently net cash of about 1.6 million.
(85.5 million + 1.6 million)/ (88.2 million shares) =~ $ 0.98
This is very close to the private placement offer which is a good approximation to Gatekeepers true value as margins are very similar for both companies.