RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Regardless of What The Share Value Is UpThe intellectual property is very important. But higher valuation levels cannot be unlocked without revenue producing projects. I see Axe as being valued as a leading edge high tech company.
Which type of high tech companies get the highest valuations?
I can tell you that one high tech segment called SAAS companies (software as a service) average valuation is around 10x company sales. So these companies are not valued at ordinary P/E multiples. Why? because almost every penny on a product sale goes to the bottom line. No physical product. No inventory.
In the case of Axe, once there are projects and a fast growth rate and higher oil prices and intellectual property, this company will likely not be valued as an oil field service company but as a high tech company.
Oil field service companies have an average P/E ratio of between 30 and 40x earnings. See: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html
Once Axe has solid revenues and shows high growth, then we are likely talking about high tech glamour valuations. So 50x earnings multiple or more is possible. None of this is unusual for high tech glamour companies.
Before the internet I used to collect IPO prospectuses from high tech companies going public back in the early 1980s. So I got used to seeing all sorts of strange valuations going back decades.