This represents a potential gain of 39.3%. So, using the $9.36 billion valuation estimate, this implies that ChargePoint has significant upside over its recent market value of $6.72 billion. Why do I use a 12 times P/S multiple? This is a one-third discount to the P/S multiple of 18 times sales, as seen from analysts on Seeking Alpha. Next, we can apply a 12 times price-to-sales (P/S) factor to the present value revenue to derive its market value of $9.36 billion. That means that the $1.17 billion in revenue is worth $780 million in present value today. Discounting that revenue to the present at a 10% rate involves a factor of 66.69%. The best way to value CHPT stock is to use analysts’ projections in the future, given that EV charging ports are bound to keep growing.įor example, Seeking Alpha forecasts that by January 2026, sales are forecast to reach $1.17 billion. This company’s consistently growing charging port revenue and related subscriptions can be projected out several years. However, as ChargePoint has over $618 million in cash on its balance sheet, it won’t be running out of cash anytime soon. This implies that the run-rate annual cash burn, unless the company keeps growing sales and earnings, could be as high as $60 million. This can be seen on of the company’s fiscal Q2 slide presentation. After capex spending of $7.8 million, its total FCF cash burn was $30.4 million for the first two quarters of 2021. 31, operating cash flow losses were $61.2 million. Moreover, the company is still losing money on a free cash flow (FCF) basis.įor example, for the six months ending Jul. However, ChargePoint’s non-GAAP net income loss was higher YOY as well, at $40.4 million versus $22.6 million (). Before Q2, the guidance was for $195 million to $205 million for the fiscal year ending Jan. This led the company to raise its full-year revenue guidance by 15% to between $225 million and $235 million. 31 were up about 61% year-over-year (YOY) to 56.1 million. If we’re going to value CHPT stock, let’s start with its recent Q2 results.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |