According to software equity group the average EV to sales ratio for saas companies is currently 14.7 as of Q2. The latest figure for private equities purchasing saas based companies is that they acquire them at a 6.7 times EV to sales ratio as of Q2 2021 and this is over 395 saas based deals.
In the last twelve months Quorum has saas based revenue of $ 24,482,182. If we multiply this sales figure by 14.7 we arrive at an enterprise value of
$359,888,075. On the other hand if we look at m&a activity then a private equity firm may bid up the enterprise value to $164,030,619.
As of Q2 2021, Quorum has debt + lease liabilities of $12,255,518. Cash and equivalents of $ 7,203,629 and total common shares of 72,810,979.
we can conclude the following:
The market cap under the first scenario should be $354,836,186 or an approximate price per share of $ $4.87
The market cap under the second scenario should be $158,978,730 or a price per share of approximately $2.18
This is one of the biggest mispriced saas based company I can find.
https://softwareequity.com/seg-saas-index-update-july-2021/
https://softwareequity.com/seg-snapshot-2q21-saas-ma-update/