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Bullboard - Stock Discussion Forum Voyager Digital Ltd VYGVQ

GREY:VYGVQ - Post Discussion

Voyager Digital Ltd > Longer Term Forecast
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Post by nozzpack on Feb 05, 2021 5:41pm

Longer Term Forecast

 

 Voyager CEO Steve Elrich has pointed out that a good way to roughly gauge revenue is to multiply it by 0.1X AUM.

In its January 2021 investor presentation, Voyager outlined that it believes it can achieve $20 billion in AUM by 2025.

If Voyager continues to enjoy the rapid AUM growth it is currently enjoying, it could theoretically get there even faster.

In its investor presentation Voyager highlights its 100x year-over-year AUM growth.

Obviously the law of large numbers plus Voyager becoming more established will make that rate unsustainable in the future, but this company is still growing very quickly.

Assuming the 10% revenue to AUM metric remains constant, $20 billion in AUM would give Voyager $2 billion in revenues.

Depending on what type of price to sales multiple we want to assign Voyager, the eventual share price would vary .

I use Coinbase as a reference .
Coinbase is expected to trade at a market cap of $100 billion on its AUM of $40 million.

Assuming that 10% of AUM as revenue.....$4 billion..holds true for Coinbase , it will trade at 25 times revenue.

Getting back to VYGR, $20 million in AUM in 2025 would represent $2 billion in revenues which would give it a valuation of $50 billion US in 2025.

Likewise, 2.5 times AUM also represents a market of $ 50 billion US.

Converted to C$, that's about $65 billion cad.

Computes to about $500 per share in C$ on forecast 2025 AUM and Revenues.

We are very early in the game here.
Indeed, Vygr is already exceeding its growth targets ..

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