Venzee Technologies Inc V.VENZ

675 mesh connections = $ 195,000/month RECURRING

[Hiddensecrets]

By end of 2021 we will have $ 195,000 in recurring revenue per month, this is based on the 675 mesh connections made in Q1.  Each mesh connections generates in this view $ 288 per month.

Companies trade at a multiple to sales and, when it is recurring the multiple is much higher.

Therefore based on Q1 mesh connections of 675 and, recurring revenue of $ 2,340,000, with a trade multiple of 12 times sales for recurring income, we have a valuation of:   $ 28,080,000

We are now trading near this market cap.

The fact is that we have not accounted for the other 9 months of possible mesh connections.

If we assume the same adoption rate then we are speaking of $ 9,360,000 in revenue and, trading at a multiple of 12 times yields a fair market cap of:   $ 112,320,000

This means that we will quadruple in price in 2021 to the:   52 cent level

For year 2022, we are speaking of 5 fold increase compared to 2021, therefore 5 times higher in stock price so we can expect a price of:    $ 2.60 per share

That means 2000% return in the next 18 months. 

mpo

[Yeppers12]

How does your price target remain the same while your company revenue goes down?  Sounds unrealistic. 

[Yeppers12]

I like your maths.   It doesn't make sense.  That's why I like it. Management forecasted $195,000 in monthly recurring revenues for yearend 2021 and using a realistic multiple of 8 times sales yields a market cap of $22.8M. For yearend 2022, management has the MRR at $850,000 US and using a multiple of 10 (still too high), market cap would be $102M Currently we sit at a market

[kcbirdie]

A 10x multiple is quite low for a early growth stage, high margin SaaS company. As has been noted elsewhere on the boards, 15x 2022 revenue has been the Cannacord standard. What comps suggest to you it should be 10 (or less)?