Sangoma Technologies Corp T.STC

2022 net income help please

[Captain71]

Hi follow shareholders,

Putting together a share price target for fiscal 2022. Revenue and Ebita estimates from the CEO look pretty good. Missing one very important number though, net income.

A lot of the early costs associated with the takeover should be past, but I’m not sure how long expenses will remain high as products and services are merged.

I was thinking net income for fiscal 2022 of around 8-10 million, and then we should see a nice improvement in fiscal 2023.

Like to know what others are estimating so I can use a consensus to create a target price.

Thanks.GLTA

[Torontojay]

Hi Captain, I would personally use cash flow before changes in working capital or adjusted ebitda as a proxy rather than net income.  Then you need to determine the maintenance capex on both tangible and intangible assets and proceed from there. The reason I'm not fond of the net income approach is that it underestimates the cash flow potential which comes mostly from their intangible non

[Captain71]

Thanks Torontojay, appreciate the info. There are many ways to estimate current and future valuation, and it is nice to compare.   For me I feel comfortable using multiples of Revenue, EBITA & earnings (all per share), based on the sector, EV and market cap. I’m using the CEO’s mean estimates of rev & ebita, but the net income is tricky yet. It has been soft the last few quarters but