Tons of Scalability / Growth Potential for ESTW EasTower Wireless ($ESTW.V) has shown some positive growth this week after signing their largest 5G site build deal ever with one of the most prominent national-owned tower companies in the US.
I want to focus on one quote from the article: “We are also on pace with expanding our crew counts to continue addressing the significant demand we are currently facing in this exciting telecommunications market.” On track means that they'll have 6 crews by August and 10 by October, each generating $64,500-$71,000 per month with an upfront training cost of $75,000 as they continue signing deals like this one, meaning that they could be generating nearly $700,000 per month in revenue with gross margins of around 37%-52% by the end of the year. It really shows the business’ scalability and growth potential as they expand operations and secure new clients.
https://ca.finance.yahoo.com/news/eastower-wireless-announces-largest-5g-120000029.html
With the 5G market estimated to grow with a CAGR of 52%, reaching a valuation of $1.67T by 2030 (ignoring all the other benefits it brings to other industries), $ESTW is well-positioned to take advantage of the industry due to their established reputation, relationships, track-record, and scalability. Now, considering the $5.7M market cap and that they’re on track to continue increasing the number of crews, it's safe to say that the current valuation is not reflecting the company’s fair value. I'll be keeping an eye out here as some upward momentum is starting to show on the charts.