Was excited by flash today, so I’ve been doing somecomparisons between LVT and previous/current high growth and high value stocksin tech.
Xero comparison creates some compelling reading, their FY10-FY12position is very similar to LVTs last 2 years, only main difference is LVT isgrowing at a much quicker rate.
NB Xero was valued at $429M at same ARR point (LVT currently$190M)… then Xero went to $1.3B market cap, then $4B in the 2 following FYs atgrowth rates of ~90% (well under LVT current growth rates of 200%+).
Xero currently sitting at $6B market cap.
Canva is private, but in their last raise, at ARR of ~$22Mthey had a valuation of over $1B and they’ve been around for twice as long as LVTto get to the same point, ie a valuation multiple of ~50.
Always some subtle differences in every stock and associatedanalysis.
| Xero - Growth Summary |
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| 1 | NZ$m (March y/end) |
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| FY08 | FY09 | FY10 | FY11 | FY12 | FY13 | FY14 |
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| 3 | ARR |
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| 6 | 13 | 25 | 52 | 93 |
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| 4 | ARR growth |
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| 117% | 92% | 108% | 79% |
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| 5 |
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| 6 | Operating Revenue | 0 | 1 | 3 | 10 | 19 | 39 | 70 |
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| 7 | Operating Expenses | -5 | -8 | -14 | -18 | -28 | -60 | -86 |
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| 9 | Capital Raised | 15 | 0 | 29 | 4 | 36 | 60 | 180 |
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| 10 | Cash | 10 | 4 | 21 | 17 | 39 | 78 | 210 |
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| 12 | Employees | 50 | 56 | 90 | ? | 194 | 382 | 758 |
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| 14 | Market Cap | 41 | 55 | 140 | 228 | 429 | 1,292 | 4,084 |
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| 15 | Market Cap / ARR multiple | N/A | N/A | 23 | 18 | 17 | 25 | 44 |
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Does anyone have any other statistical analysis/insights to compliment my analysis? Are they on track like my research shows?
