Editing Stockhub

{{Logo Image|[[File:Stockhub logo icon meta tag.png|thumb]]}}

{{Short description|Helping to make more money for everyone (and not just the wealthy!).}}

| Risk/return|| [[Risk/return::High]]

| Price per share|| [[Price per share::£10]]

| Asset class|| [[Asset class::Equities]]<ref name=":0">https://find-and-update.company-information.service.gov.uk/company/13169692</ref>

| Industry|| [[Industry::Fintech]]

| Country of incorporation|| [[Country of incorporation::United Kingdom]]<ref name=":0" />

| Minimum investment amount|| [[ Minimum investment amount::£10]]

| Maximum investment amount|| [[ Maximum investment amount::£500,000]]

| Current valuation|| [[Current valuation::£4,000,000]]

| Investor type|| [[Investor type::All]]

| Tax schemes|| [[Tax schemes::SEIS/EIS]]

| Bid/ask spread|| [[Bid/ask spread::NA]]

| Commission amount|| [[Commission amount::Zero]]

| Market|| [[Market::Private]]<ref name=":0" />

*The company’s flagship product is targeted towards Active Investors, who are a group of people that are willing and able to be actively involved in the process of finding suitable investments. The product is an investment research platform. What makes the platform unique is that the research is produced open collaboratively. Evidence suggests that open collaborative investment research will, in time, result in Active Investors making better investment decisions, and, ultimately, more money.

*To date, the Stockhub platform covers 375 investments<ref name=":2" />, and is growing at a rate of seven investments a day<ref>The Stockhub platform was created on 1st March 2022, and the date of the calculation is 25th April 2022, so the platform has been live for 56 days. 375 investments divided by 56 days equates to 7 investments per day.</ref>.

What makes the platform unique is that the research is produced open collaboratively. Evidence suggests that open collaborative investment research will, in time, result in Active Investors making better investment decisions, and, ultimately, more money.

As of 25th April 2022, the Stockhub platform covers 375 investments.<ref>https://wiki.stockhub.co:447/main/index.php?title=Main_Page</ref>

The next key milestone of the company is to increase the number of investments on the platform to 1,000 investments (from 375 investments) by 30th June 2022.

A key way to determine a product's closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. Active Investors) and aiming to provide the same core benefit (i.e. more money), and then ranking the offerings in terms of the total amount of time spent using and/or money spent purchasing the offerings relative to other similar offerings. With that said, according to Stockhub, the closest competitors of its namesake offering are Yahoo Finance, Investing.com, CoinMarketCap, MarketWatch, Seeking Alpha, Goldman Sachs Investment Research and Edison Investment Research. A detailed comparison between Stockhub and some of its main competitors are shown in the table below.

The company is led by the person who believes in the mission of the company the most: the creator of the company mission. Combined, the members of the team have helped 342 million people - including one of the world's wealthiest persons - make better investment decisions and returns, and helped build some of the world's most renowned digital platforms.

The compliance advisor of the company is Richard Gill. Over a 13 year period, Richard has helped provide compliance oversight at investment research and trading companies (including Crowd for Angels, Align Research and Master Investor). He is approved by the Financial Conduct Authority to perform functions of compliance oversight (CF10) and money laundering reporting (CF11). He is also a CFA charterholder and a graduate of King's College London.

|Research shows that there's an almost perfect positive correlation between the amount of adverting revenue generated on a platform and the total amount of time spent by users on the platform. In other words, the more time users spend on a platform, the more advertising revenue the platform generates. Accordingly, Stockhub believes that the best measurement unit of future advertising market share is time. In UK broadcasting, there's a limit on the amount of advertising that can be shown to viewers, and the limit is 15% of 24 hours (i.e. around 9 minutes per hour or around 216 minutes a day). Research suggests that Active Investors represent around 10.4% of the global population and that the average amount of time Active Investors spend researching investments is 30 minutes per day. Consequently, the Stockhub company estimates that the peak market share of its namesake platform is around 2%, and, therefore, suggests using the share amount here.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>, and the margin for its peers is 20%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />, and the margin for its peers is 80%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />, and the margin for its peers is 10%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />, and the margin for its peers is 25%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 20%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 60%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 10%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 25%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 20%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 40%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 10%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 25%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 20%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 40%.

|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 10%.

#By calculating the present value of the investment's expected future cash flows (i.e. discounted cash flow valuation); and

#By comparing the investment to other similar investments (i.e. relative valuation).

Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that Stockhub suggests to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report).

|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.

|Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.