Editing Stockhub
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The company estimates that the expected return of an investment in Stockhub over the next five years is 57x. In other words, an £1,000 investment in the company is expected to return £57,000 in five years time. | The company estimates that the expected return of an investment in Stockhub over the next five years is 57x. In other words, an £1,000 investment in the company is expected to return £57,000 in five years time. | ||
The return figure estimate is based on the following key assumptions: an industry (online advertising) standard growth-adjusted enterprise value/sales multiple of 41.5x, Stockhub's year-5 revenue estimate (of £4.8 million), Stockhub's year-6 to year-8 compound annual growth rate estimate (of 116%) and the current estimated company valuation (of £4 million). The calculation is as follows: (41.5 x £4.8 million x 1.16) / £4 million = 57x. | |||
Assuming that a suitable return level over five years is 10% per year and Stockhub achieves its expected return level (of 57x), then an investment in the Stockhub company is considered to be a 'suitable' one. | Assuming that a suitable return level over five years is 10% per year and Stockhub achieves its expected return level (of 57x), then an investment in the Stockhub company is considered to be a 'suitable' one. |