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21-10-2014, 06:26 AM
#4941
Originally Posted by Corporate
All - rather than cluter up the xero thread why don't you take it to private messages.
Getting back to Xero:
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.
Currently by my calculations xero is sitting on 15.5x ACMR
Cheers,
James
Can I make a suggestion and say, forget about trying to value the company and watch what is happening with xro's chart,use some basic TA to make any decisions you need to make about the co. The picture speaks to you.
After all,It's all about the share price right?
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21-10-2014, 07:18 AM
#4942
Originally Posted by Corporate
All - rather than cluter up the xero thread why don't you take it to private messages.
Getting back to Xero:
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.
Currently by my calculations xero is sitting on 15.5x ACMR
Cheers,
James
Here's a good start point:
http://www.bullandbearwise.com/NASDAQ100RealPE.asp
And overall indices ratios:
http://online.wsj.com/mdc/public/page/2_3021-peyield.html
Wondering how those saying the market is "fairly valued" can say that with a straight face...
Last edited by BFG; 21-10-2014 at 07:22 AM.
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21-10-2014, 08:37 AM
#4943
Just received an email from Z.......Now you can get a copy of your Z Card invoice data fed into Xero.
Maybe some comfort for holders that Rod is doing something.
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21-10-2014, 08:40 AM
#4944
Originally Posted by Corporate
All - rather than cluter up the xero thread why don't you take it to private messages.
Getting back to Xero:
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.
Currently by my calculations xero is sitting on 15.5x ACMR
Cheers,
James
http://www.scalevp.com/a-valuation-f...saas-companies
http://kellblog.com/2013/06/05/what-...uation-growth/
As you can see, there’s basically no reward for profitability. *In real estate what matters is location, location, location. *In SaaS, it’s growth, growth, and growth.
Last edited by winner69; 21-10-2014 at 08:44 AM.
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21-10-2014, 09:09 AM
#4945
Originally Posted by Fisherboy3
7.Xero has executed THEIR plan flawlessly and so will be able to raise capital in the future their high value backers don't give a hoot about sp fluctuations specially that its corrected from ridiculous to reasonable.
Good post. This is the only one I disagree with. Their plan in the US has not gone flawlessly but they have been quick to realise this and make necessary changes. They are probably 2 years behind where their original plan was for the US. However, they identified this and increased their push into the UK market (much simpler as doesn't have 50 different state taxes) to compensate. The risk is the 2 year delay in the US has given Intuit time to spot the risk and take action.
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21-10-2014, 09:18 AM
#4946
Originally Posted by Corporate
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.
Currently by my calculations xero is sitting on 15.5x ACMR
There were alot of articles linked in one thread but it was taken down when Sparky when Nuclear (since he started the thread - very F'n annoying). There is a big range 5-20 depending on stage of growth is reasonable.
Here's a start but it really needs a third dimension with growth rate: http://clarecapital.co.nz/right-evrevenue-multiple/
Originally Posted by kizame
Can I make a suggestion and say, forget about trying to value the company and watch what is happening with xro's chart,use some basic TA to make any decisions you need to make about the co. The picture speaks to you.
After all,It's all about the share price right?
No harm putting a price on it, and then look to TA to find an entry point. The lower it goes compare to your target price, the better bargain it is.
I note the lowest of the broker targets I have seen is Woodwards at $15.20. All the others are above last nights closing.
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21-10-2014, 09:52 AM
#4947
Markets have calmed and tech stocks up(in the US)--If Xro cant bounce today,Id be having a serious think
disc.-Not holding but finding it an interesting share to watch--When I fist looked at it it was $40 and my faith doesnt extent to those heights for any share on the NZX
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21-10-2014, 10:03 AM
#4948
could hit support 15 today see what happens if when breaks target 11
one step ahead of the herd
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21-10-2014, 10:08 AM
#4949
Member
..and then there's the buys in at $3.50 cps... Forgive people their dreams...
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21-10-2014, 10:09 AM
#4950
Member
I may buy once it goes under a billion mcap, over that no thank you, not worth the risk. see you at $8
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