SYN VALUATION METRICS Synchronica currently has recurring revenue of approx. $3 million CDN per month and a cost base of approx. $2.7m per month and just recently announced that the business was EBITDA profitable for November and December 2011
In addition to one-off contracts and new licenses, SYN is well poised to have its best year ever
The company has already established a considerable customer base (93 MNOs and 10 device manufacturers), amassed through aquisition and organic growth
And today's news about the JV with INT is only going to add to SYN's user base, and global exposure
So...
Here's a little sensitivity test:
$3 million revenue (12) -$2.7 million expenses (12) = $3.6 million net with $36 million annual revenue
$3.5m revenue (12) - $2.7m expenses (12) = $9.6m net with $42m revenue
$4m revenue (12) - $2.7m expenses (12) = $15.6 net with $48m revenue
Today's current market cap is $32m
SYN shares aren't even trading at 1x revenue right now
IMHO Synchronica is drastically undervalued at these levels and it's only a matter of time before it's back into the .40s and beyond
Based on the current float, at .40 the market cap would be $63m - which still seems low to me
Comparables like Myriad trade at 3x revenue
What do YOU think about SYN?
The above is just my opinion, govern yourself accordingly.
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Point
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