March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

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Mcfly
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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by Mcfly »

This is the summary valuation from the note. Has anyone managed to get the full note?

Echos of Massive. Buy recommendation, 8.5p target price. Our target price is based on a considerable discount to our 20p DCF, which is based on a 15% WACC, to capture forecast risk and funding needs. However, we believe the strategic value of Bidstack should also be considered in an investor's appraisal of value. This has been tried before; Massive, a pioneer in this sector, emerged during the dotcom boom and was sold to Microsoft in 2008 for ~$300m. More than 10 years on, we believe the industry infrastructure is better equipped to scale the format; there is an established programmatic ecosystem, faster and more reliable internet connections and more powerful hardware.



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by Mcfly »

Forecast DCF of 20p sounds good, and that’s before considering the strategic value of Bidstack.



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by MGXYZ »

@Mcfly you absolute tease!

Good to see you here!!



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by GlobalNomad »

for everyone else who had to check

DCF - discounted cash flow - DCF analysis attempts to figure out the value of a company today, based on projections of how much money it will generate in the future

WACC - weighted average cost of capital -A firm’s Weighted Average Cost of Capital (WACC) represents its blended cost of capital across all sources, including common shares, preferred shares, and debt. The cost of each type of capital is weighted by its percentage of total capital and they are added together. This guide will provide a detailed breakdown of what WACC is, why it is used, how to calculate it, and will provide several examples.
WACC is used in financial modeling as the discount rate to calculate the net present value of a business



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by MGXYZ »

All we need is the digits from the PDF Hyperlink - we can do the rest. :ugeek:



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by GlobalNomad »

as noted yesterday we need something on their timeframes



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by GlobalNomad »

sorry for my ignorance on this but I presume DCF of 20p is per share.....



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by MGXYZ »

Correct @GlobalNomad.

I’m sure there are a lot of assumptions in that calc so its difficult to interpret how fair that value is on the face of it.



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by MGXYZ »

Should give us expected timing of cash flows though which will be very nice!



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Re: March 2020 Stifel Broker Note - INITIAL Buy Rating @ 8.5p

Post by Fudgerella30 »

Actually thought we would get an rns today



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