Hi there, this is great analysis. Can I confirm my understanding
Trading at ~0.92 x FY '21 Est. Revenue
I dont believe this is correct as you are taking total revenue and dividing it by "Opera Core" market cap. Is this appropriate? Shouldnt it be just using the market cap?
I have used sum-of-part analysis to filter out the value of assets on books and cash. Mind you, Opera is valuing these minority assets on books significantly lower than what they would be truly valued. Even if you divide the (market cap - cash) by revenue, it is still trading at 2.4x FY'21 revenue which is still significant multiple discount to what a business with 95% GM and growing at 50% would fetch.
This is really fascinating analysis. I've been following this one loosely for sometime. It would be great to discuss and exchange views offline, if you are up for it.
Hi there, this is great analysis. Can I confirm my understanding
Trading at ~0.92 x FY '21 Est. Revenue
I dont believe this is correct as you are taking total revenue and dividing it by "Opera Core" market cap. Is this appropriate? Shouldnt it be just using the market cap?
I have used sum-of-part analysis to filter out the value of assets on books and cash. Mind you, Opera is valuing these minority assets on books significantly lower than what they would be truly valued. Even if you divide the (market cap - cash) by revenue, it is still trading at 2.4x FY'21 revenue which is still significant multiple discount to what a business with 95% GM and growing at 50% would fetch.
This is really fascinating analysis. I've been following this one loosely for sometime. It would be great to discuss and exchange views offline, if you are up for it.
you can find and DM me on twitter. Just search for $OPRA and you will find me