Peer Comparison Analysis: BTH vs. SaaS/Tech ASX Companies I have...

Peer Comparison Analysis: BTH vs. SaaS/Tech ASX Companies

I have made a comparison per Table below based on MCap/Revenue ratio and as you can see despite the recent run in BTH price, its Mcap/Revenue ratio of 3.77 is still sitting at the lowest end of the range. I have divided them into 3 groups, the first group are more established companies which are no longer considered small or microcap, with average Mcap/Revenue ratio of 13.73 , while the second group are smallcap growth stocks with average of 4.64. The third group are microcap stocks which have prices clearly ahead of its fundamentals.

As mentioned earlier, BTH is playing catch up with the rest and if it were to trade at Mcap/Revenue of the second group, its price should be at 35c suggesting a further 25% upside based on existing achievements. In other words, based on what BTH has achieved to date, its price IMO ought to be @ 35c and further upside can be expected with new contract signings and positive corporate developments.

I have also checked out Australian Ethical Investments and the fact that they have only just acquired a substantial 6% stake in BTH only recently provides confidence that they would have undertaken their due diligence and expect strong returns ahead.

Similar to YOJ trade earlier on, retailers did not sell down their holdings much and with lower sell side available, new entrants would be forced to bid higher.

DYOR GLTAH! This has way more to go!

	Column 1	Column 2	Column 3	Column 4	Column 5
0	Code	Stocks	Revenue (m)	Mcap(m)	Mcap/Rev
1	WTC[/B]	Wisetech	$ 153.80	$ 3,129.89	20.35
2	XRO	Xero	$ 295.40	$ 4,298.03	14.55
3	ACX	Aconex	$ 61.20	$ 955.35	5.93
4				Average	13.73
5			Revenue (m)	Mcap(m)	Mcap/Rev
6	APX[/B]	Appen	$ 148.00	$ 634.31	4.29
7	PPS	Praemium	$ 35.40	$ 221.18	6.25
8	CAT	Catapult	$ 60.80	$ 273.93	4.51
9	FZO	Family Zone	$ 21.12	$ 102.96	4.88
10				Average	4.64
11			Revenue (m)	Mcap(m)	Mcap/Rev
12	BRN[/B]	Brainchip	$ 0.74	$ 153.97	208.07
13	LVH	Livehire	$ 1.30	$ 249.99	192.30
14	AD1	Apply Direct	$ 1.05	$ 38.54	36.64
15				Average	143.11
16
17	BTH	Big Tin Can	$ 13.08	$ 49.38	3.77