Urbanimmersive Inc V.UI

Paper napkin math

[Torontojay]

So I'm here  jotting down some numbers on a napkin as I usually do. I'm reminded of the enterprise multiple given to saas companies in the US of approximately 14 as of April 2021 relative to sales. Using 171.9 million fully diluted shares from their recent April 15th investor press conference and subtracting the potential cash proceeds from the warrants and options of ~ 15m *$0.2 + 15m*$0.24 =~ $6.6m we get an approximate enterprise value fully diluted of $28.3 -$6.6m - $0.5m(cash) + $2.1m (long term debt) =~ $23.36

total saas revenue ttm =~ $2.8m 
Ev to saas revenue multiple =~ 8.34 

If we use 14 as an industry standard then the share price should be approximately $0.257 to be in line with the industry. Keep in mind I used a fully diluted share count and some of these warrants may expire and so cash proceeds may never be received. However, this will also lower the diluted share count. 





https://softwareequity.com/research/

[laurencelefou]

Funny that you titled your blog Paper napkin.  I just invested in WestBond Industries (WBE).  They  manufacture paper napkins and other paper-related products such as wet wipes.  Boring company, but I believe it is cheap and a fat dividend.  I will be publishing my reasoning for the purchase in the coming days. I am preparing my questions for the next quartely meetings.&

[Torontojay]

Nice, I've never heard of this company but it looks interesting. I will look into it when I have some time. I've owned 2 paper and packaging companies, one was Rocktenn which later merged into Westrock and Orchids Paper Products which are both Us based companies. I was very excited about my purchase in Orchids ( around 2012-2013) and I did really well with it that I cashed out after