RE:Needed PTQ price appreciation greater than discount to peersTrademark11 wrote: Hardik: ........we still think we are about 30%, 45% discount to what our peers are being trading at. So I think there's definitely a future opportunity from an ARPU standpoint of view. But even at taking our current valuation, there is still enough arbitrage to continue doing what we are doing......
Peer Average EV/Ebitda = 11.4
PTQ EV/Ebitda = 8
PTQ discount to where peers are trading = (11.4 - 8) / 11.4 = 30%
In order for PTQ to come into alignment with its peers, and assuming the peer stock prices are static, PTQ stock price must appreciate by (11.4 - 8) / 8 =42.5%
A 30% "discount to where peers are trading" represents 42.5% price appreciation for PTQ to close the gap
A 45% discount to peers = 82% PTQ sp appreciation
That 30% discount you point out pretty much aligns with Raymond James $3 price target too... I think the same..! ;-)