TNT 0.00% 13.0¢ tesserent limited

Cyber Security company valuations

  1. 6,112 Posts.
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    In May 2020, an article from a Frankfurt based investment bank
    reported an analysis of the valuations of cyber security
    companies between 2006-2019 in terms of EV/sales and EV/EBITDA.
    https://ma-review.com/cyber-security-an-insight-into-the-sector/
    m a - r e v i e w . c o m /
    (see sec. 6.1)

    The article showed that in 2019, the average EV/sales was 5.5 , the EV/EBITDA was 25.3.
    Here's a comparison with the latest EV/Sales numbers (late 2020) for some US players and several
    ASX cyber companies, including TNT :

    EV/Sales
    FTNT.........10
    CYBR........14
    CHKP..........8.8
    JNPR..........1.9
    CSCO.........3.9
    QLYS........14

    WHK.........58
    FZO..........10
    AR9..........73
    NXL..........20
    TNT............5.8

    The TNT number I've based on the annualised FY21 Q1 revenue (=$60.6m).
    TNT currently has the lowest EV/sales ratio of all the ASX cyber stocks.

    If TNT achieves the base scenario revenue of $28m for FY21 Q2 (or $112m/y) which seems highly likely,
    its EV/sales ratio would be 3.2. This would also make it's valuation -40% below the sector average.
    From any angle, TNT is looking well undervalued as a cyber stock.

    All IMHO, DYOR





 
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