SPN valuation to its peers Hello,
I thought to share valuations of marketing & loyalty companies that are in the same industry where Snipp Interactive operates in. $SNIPF in US is trading at $46M market cap @ $.195 and based on trailing 12 months of revenue, they are trading at 3.5x P/S. Assume $SNIPF does $14M USD revenue in 2021 (61% YoY increase in revenue) and on minimum grow by another 50% in 2022 at $21M USD revenue, that’s 2.1x P/S ratio to 2022 revenues.
Now let’s look at few recent IPOs and one private company’s valuations:
Springbig, Marijuana industry marketing platform and loyalty company, will go public at $500M worth with company on track to deliver $24M in revenues in 2021. It will be trading at 21x+ P/S ratio soon in the market. Yes, that’s 21x P/S (10x more than 2022 P/S of SNIPF)
Bakkt Holdings, Inc. (BKKT) on NYSE, Bakkt's digital wallet enables consumers to buy, sell, and spend their cryptocurrencies along with their hotel, airline, and credit card points, did $32M revenue in TTM trading at $1.2B market cap at 307.5x P/S ratio. It was described as a “digital assets marketplace,” built on a wallet app supporting 30 loyalty programs and 200 gift cards. Yes, we can say that valuations are high now because of bitcoin adaption lately and new highs, but we shouldn’t forget that Snipp also has an option to deliver loyalty points/rewards in bitcoin/crypto currencies as announced on 2021-02-09: Snipp Adds Bitcoin And Share Ownership Incentives To Its Snipp Rewards Platform. Snipp now offers its clients two cutting edge financial rewards as incentives to its end customers.
MailChimp, Mailchimp is an American marketing automation platform and email marketing service, used by businesses to manage their mailing lists and create email marketing campaigns and automations to send to customers, literally just got taken out for 15x FY20 Sales or at $12B valuation.
In conclusion, if we take an average of P/S ratio of 3 companies above, which is on average 22x P/S multiple, but to be conservative, reduce that in half to 11x P/S, I think Snipp Interactive has a potential to trade at P/S of 11x of 2022 revenues or at $231M USD market cap which equates to $1 USD or $1.25 CAD approx. share price. (400%+ upside from here)
Technicals: Snipp Interactive $SNIPF hit new 52 WK high at .21 cents with 1M volume traded on 2021-11-02. Average volume on SNIPF on OTC is 40K. I don’t know all the details, but it seems like a big buyer accumulated a lot of shares out of 1M on 2021-11-02. Time will tell…
Full disclosure: I own stock and my comments may be biased. Please do your own DD and this is not an advice.