The market cap is pricing in the fact they have failed to deliver new deals and that they are still spending to do so, whilst APN has not been too crash hot at selling space. That is business/investment risk 101.
Negative profitability at this point is because they still spend to try and get new deals plus have funded the screens for trials from revenues. Also the D&A is over the initial contract life so it is front heavy and depreciates current P&L. on a FCF basis they are self funding. FCF is what matters. If APN pull their heads out and sell space to potential, which I'd have to presume is a KPI, XTD would be generating good FCF which would put it on a low single digit FCF multiple. Companies with decent revenue visibiity and locked in mid to long term contracts will trade at double digit FCF multiple.
TO be three times lower than today? Given price is 8.5 cps and 3x that is 25.5 does that mean you think the company is worth negative 17cps?
The market cap is pricing in the fact they have failed to...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
