Stockhub

Helping to make more money for everyone (and not just the wealthy!).

Key information

Risk/return	High
Price per share	£10
Asset class	Equities
Industry	Fintech
Country of incorporation	United Kingdom
Minimum investment amount	£10
Maximum investment amount	£500,000
Current valuation	£4,000,000
Investor type	All
Tax schemes	SEIS/EIS
Bid/ask spread	NA
Commission amount	Zero
Market	Private

Summary

• The mission of the company is to help make more money for everyone (and not just the wealthy!).
• The company is led by the former principal investment analyst of one of the world's wealthiest persons.
• 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 it enables investment research to be produced open collaboratively. Evidence suggests that enabling 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 281 investments, and is growing at a rate of six investments a day.
• The Stockhub company estimates that the expected return of an investment in the company over the next five years is 55x. In other words, an £1,000 investment in the company is expected to return £55,000 in five years time.
• The degree of risk associated with an investment in Stockhub is higher than in a company that's say trading on a public market (such as, HSBC).

Operations

How did the idea of the company come about?

The idea of the Stockhub company came to the now founder of the company when he developed a strong desire to make more money. Researching into how to make more money, he realised that one of the best ways to do so is to invest in investments. The problem he had was that he didn’t know what to invest in, and deciding what to invest in took him a considerable amount of time. He also realised that there were many people who felt the same way as him, with the average person rating their desire to make more money at 8 out of 10 and the main struggle experienced about making more money being a lack of time. In his quest to make more money for himself and people like him, the Stockhub company was born.

What's the mission of the company?

Stockhub Limited is a company that’s on a mission to help make more money for everyone (and not just the wealthy!).

The flagship product

Who’s the target audience of the company’s flagship product?

The audience is Active Investors, who are a group of people that are willing and able to be actively involved in the process of finding suitable investments.

What's the product?

Its first product is a free-to-access investment research platform.

What makes the product unique?

What makes the platform unique is that it enables investment research to be produced open collaboratively. Evidence suggests that enabling open collaborative investment research will, in time, result in free-to-access, high-quality research on the largest number of investments. In other words, it will result in the democratisation of investment research, in turn resulting in Active Investors making better investment decisions, and, ultimately, more money.

What's the biggest achievement of the company?

As of 14th April 2022, the Stockhub platform covers 281 investments.

What's the next key milestone of the company?

The next key milestone of the company is to increase the number of investments on the platform to 1,000 investments (from 281 investments) by 30th June 2022.

Market

Stockhub believes that the best monetisation method of the company is advertising. With the advertising method, advertisers pay to promote their offerings on the Stockhub platform. Research suggests that promoting an offering on the Stockhub platform will lead to increased visibility of the offering, and, ultimately, increased offering sales.

What's the total addressable market of the company?

Here, the total addressable market (TAM) is defined as the global advertising market, and based on a number of assumptions, it is estimated that the size of the market as of today (14th March 2022), in terms of revenue, is $850 billion (£635 billion).

What's the serviceable available market of the company?

Here, the serviceable available market (SAM) is defined as the global, Active Investor-focused advertising market, and based on a number of assumptions, it is estimated that the size of the market as of today (15th March 2022), in terms of revenue, is $88 billion.

What's the serviceable obtainable market of the company?

Finally, here, the serviceable obtainable market (SOM) is defined as the UK, Active Investor-focused advertising market, and based on a number of assumptions, it is estimated that the size of the market as of today (15th March 2022), in terms of revenue, is $2.8 billion.

Competition

The closest competitors to the Stockhub platform, in a range of key categories, is Robinhood (category: investment platform), Goldman Sachs Research (category: investment research platform), Google Search (category: general information platform) and Bloomberg Terminal (category: financial information platform).

Investment research providers

Competition comparison

	Stockhub	Seeking Alpha	Goldman Sachs Investment Research	Edison Investment Research
How is the research produced?
Type of production method?	Crowdsourced information, decentralized production	End-user-paid-for, crowdsourced information, centralized production	End-user-paid-for, insourced information, centralized production	Sponsor-paid-for, insourced information, centralized production
Is the information on the platform sourced from a large, relatively open, and often rapidly evolving group of participants (i.e. crowdsourced information)?	Yes	Yes	No	No
Is the production of the research controlled by no single entity (i.e. decentralised production)?	Yes	No	No	No
Are contributions able to be made anonymously?	Yes	No	No	No
What is the estimated cost for the investment research company to produce research on a specific investment per year?	Zero	£850	£5,000	£5,000
What are the main features of the research for the end-user (i.e. Investors)?
What is the price of the research?	Free	$179.99 per year	$30,000 per year	Free
How many investments are realistically able to be covered using this method?	Unlimited	Limited	Limited	Very limited
What is the expected quality level of the research?	High	Medium	High	High

Team

The company is led by the person who believes in the vision of the company the most: the creator of the vision. 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.

Chief Executive Officer

The Chief Executive Officer of the company is Manos Halicioglu. Over a period of around 11 years, Manos has helped 342 million people - including one of the world’s wealthiest persons (Jim Mellon) - make better investment decisions and returns (at the European Central Bank, Burnbrae Group and Master Investor). He graduated from a world top 6 university (Imperial College) and passed both levels 1 and 2 of the most renowned investment management qualification (Chartered Financial Analyst). Mr. Halicioglu also featured in the press, including CityAM, Bloomberg and Portfolio Institutional.

Chief Technology Officer

The Chief Technology Officer of the company is Jitesh Halai. Over a 23 year period, Jitesh has helped build digital platforms at leading institutions (including Just Eat, Asos and Credit Suisse). He studied Mathematical Sciences at Queen Mary University of London and an Executive Master of Business Administration at Imperial College.

Business Advisor

The business advisor of the company is Phil Hollingdale. Phil has founded or co-founded six tech companies, with five successful exits so far. His current business is a digital workplace savings platform that has 400,000 customers and £1.7 billion assets under management (as at March 2022).

Compliance Advisor

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.

Financials

What are the financial forecasts?

In keeping in-line with industry standards, the number of years of financial forecasts shown below is five years.

Income statement

Income statement

Year/Item	Year 1	Year 2	Year 3	Year 4	Year 5
Year end date	28/02/2022	28/02/2023	28/02/2024	28/02/2025	28/02/2026
Revenues (£'000)	£126.169	£332.681	£842.810	£2,051.447	£4,797.544
Gross profits (£'000)	£100.935	£266.145	£674.248	£1,641.158	£3,838.035
Operating profits (£'000)	£25.234	£66.536	£168.562	£410.289	£959.509
Net profits (£'000)	£20.439	£53.894	£136.535	£332.334	£777.202

What are the assumptions used to estimate the financial forecasts?

Key inputs

Description	Value	Commentary
Revenue
What's the estimated current size of the total addressable market?	£635,325,000,000	Here, the total addressable market (TAM) is defined as the global advertising market, and based on a number of assumptions, it is estimated that the size of the market as of today (14th March 2022), in terms of revenue, is £635 billion (or $850 billion).
What's the estimated terminal annual growth rate of the total addressable market?	3%	Research shows that the growth rate of the global advertising market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022).
What's the estimated Stockhub peak market share?	2%	The Stockhub company is targeting a 2% share, and given the past successes of its team, the company believes that the share is realistically achievable, and, therefore, suggests using the share amount here.
Which distribution function do you want to use to estimate Stockhub revenue?	Gaussian	Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function (i.e. the revenue distribution is bell shaped), so Stockhub suggests using that function here.
What is the estimated Stockhub lifespan?	50 years	Stockhub's vision is to be a large organisation (more than 10,000 employees), and research shows that the average lifespan of a large corporation is around 50 years.
What's the estimated standard deviation of Stockhub revenue?	5 years	Another way of asking this question is this: within how many years either side of the mean does 68% of revenue occur? The Stockhub company suggests using 5 years (i.e. 68% of all sales happen within 5 years either side of the mean year), so that's what's used here.
Growth stages
How many main stages of growth is Stockhub expected to go through?	4 stages	Research suggests that a company typically goes through four distinct stages of cash flow growth. Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation. In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company. A summary of the economic links to cash flow patterns can be found in the appendix of this report. Stockhub estimates that with its operating and investing cash flows both negative (-) and its financing cash flows positive (+), the company is in the first stage of growth (i.e. the introduction stage), and, therefore, it has a total of four main stages of growth.
What's the expected duration of growth stage 1?	17 years	Research suggests that given the expected lifespan of the company (i.e. 50 years), 17 years is suitable for stage 1.
What's the expected duration of growth stage 2?	4 years	Research suggests that given the expected lifespan of the company (i.e. 50 years), 4 years is suitable for stage 2.
What's the expected duration of growth stage 3?	8 years	Research suggests that given the expected lifespan of the company (i.e. 50 years), 8 years is suitable for stage 3.
What's the expected duration of growth stage 4?	21 years	Research suggests that given the expected lifespan of the company (i.e. 50 years), 21 years is suitable for stage 4.
Growth stage 1
Cost of goods sold margin (%)	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), and the margin for its peers was 20%.
Selling, General and Administrative expenses margin (%)	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), and the margin for its peers was 80%.
Tax rate (%)	19%	Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. The Stockhub company mainly operates in the United Kingdom, and the marginal tax rate there is 19%.
Depreciation rate (%)	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), and the margin for its peers was 10%.
Fixed capital margin (%)	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 1), and the margin for its peers was 25%.
Change in working capital (£000)	Zero	Stockhub suggests that for simplicity, the change in working capital figure is zero.
Growth stage 2
Cost of goods sold margin (%)	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), and the margin for its peers was 20%.
Selling, General and Administrative expenses margin (%)	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), and the margin for its peers was 60%.
Tax rate (%)	19%	Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. The Stockhub company mainly operates in the United Kingdom, and the marginal tax rate there is 19%.
Depreciation rate (%)	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), and the margin for its peers was 10%.
Fixed capital margin (%)	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), and the margin for its peers was 25%.
Change in working capital (£000)	Zero	Stockhub suggests that for simplicity, the change in working capital figure is zero.
Growth stage 3
Cost of goods sold margin (%)	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), and the margin for its peers was 20%.
Selling, General and Administrative expenses margin (%)	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), and the margin for its peers was 40%.
Tax rate (%)	19%	Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. The Stockhub company mainly operates in the United Kingdom, and the marginal tax rate there is 19%.
Depreciation rate (%)	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), and the margin for its peers was 10%.
Fixed capital margin (%)	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), and the margin for its peers was 25%.
Change in working capital (£000)	Zero	Stockhub suggests that for simplicity, the change in working capital figure is zero.
Growth stage 4
Cost of goods sold margin (%)	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), and the margin for its peers was 20%.
Selling, General and Administrative expenses margin (%)	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), and the margin for its peers was 40%.
Tax rate (%)	19%	Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. The Stockhub company mainly operates in the United Kingdom, and the marginal tax rate there is 19%.
Depreciation rate (%)	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 4), and the margin for its peers was 10%.
Fixed capital margin (%)	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), and the margin for its peers was 25%.
Change in working capital (£000)	Zero	Stockhub suggests that for simplicity, the change in working capital figure is zero.

Risks

As with any investment, investing in Stockhub carries a level of risk. Overall, based on the key risks highlighted below, the degree of risk associated with an investment in Stockhub is higher than in a company that's trading on a public market (such as, HSBC).

Early-stage investment

Stockhub Limited is at one of the earliest stages of the business lifecycle, and the failure rate of companies at that stage is usually much higher than those at a later stage.

Illiquid investment

The number of transactions in shares of private companies is usually significantly lower than in public companies, typically resulting in it taking longer to sell shares in private companies at a price that is at least equal to the price that the shares were bought at. Accordingly, the Stockhub investment opportunity is considered to be higher risk than more liquid companies.

Valuation

What's the expected return of an investment in Stockhub?

The Stockhub company estimates that the expected return of an investment in the company over the next five years is 55x. In other words, an £1,000 investment in the company is expected to return £55,000 in five years time. The assumptions used to estimate the return figure can be found in the table below.

Assuming that a suitable return level over five years is 10% per year and Stockhub achieves its expected return level (of 55x), then an investment in the Stockhub company is considered to be a 'suitable' one.

For those in the UK: Stockhub is SEIS and EIS eligible, a key benefit of which is that those who invest now can claim back up to 50% of the investment amount in income tax relief. Accordingly, the estimated expected return of investing in the business is even higher for UK-citizens (than non-UK citizens).

What are the assumptions used to estimate the return?

Key inputs

Description	Value	Commentary
Which valuation model do you want to use?	Discounted cash flow	There are two main approaches to estimate the value of an investment: By calculating the present value of the investment's expected future cash flows (discounted cash flow valuation); and By comparing the investment to other similar investments (relative valuation). Research suggests that the discounted cash flow valuation approach is more accurate, 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).
Which financial forecasts to use?	Stockhub	The only available forecasts are the ones that are supplied by the Stockhub company (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
Growth stage 1
Discount rate (%)	25%	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 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 indicates that companies in the first stage of the business lifecycle are often held by either undiversified owners or by partially diversified venture capitalists. Consequently, it does not make sense to assume that the only risk that should be priced in is the market risk; the cost of equity has to incorporate some (in the case of venture capitalists) or maybe even all (for completely undiversified owners) of the firm specific risk.
Probability of success (%)	20%	Research suggests that a suitable rate for a company in this growth stage (i.e. stage 1) is 20%.
Growth stage 2
Discount rate (%)	15%	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 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.
Probability of success (%)	50%	Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 50%.
Growth stage 3
Discount rate (%)	10%	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 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.
Probability of success (%)	100%	Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%.
Growth stage 4
Discount rate (%)	10%	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 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.
Probability of success (%)	100%	Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%.
Other key inputs
What's the current value of the company?	£4,000,000	As at 23rd February 2022, the Stockhub company estimates the current value of its company at £4 million.
Which time period do you want to use to estimate the expected return?	Between now and five years time	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.

Sensitive analysis

The main inputs that result in the greatest change in the expected return of the Stockhub investment are, in order of importance (from highest to lowest):

1. The discount rate (the default weighted average rate is 15%);
2. The probability of success rate (the default weighted average rate is 71%); and
3. Stockhub peak market share (the default share is 2%)

The impact of a 50% change in those main inputs to the expected return of the Stockhub investment is shown in the table below.

Stockhub investment expected return sensitive analysis

Main input	50% worse	Unchanged	50% better
The discount rate	10x	55x	412x
The probability of success rate	14x	55x	88x
Stockhub peak market share	27x	55x	82x

Actions

To invest in Stockhub, click here.

To contact Stockhub, click here.

Appendix

Relative valuation approach

What's the expected return of an investment in Stockhub?

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.

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.

What are the assumptions used to estimate the return figure?

Key inputs

Description	Value	Commentary
Which type of multiple do you want to use?	Growth-adjusted EV/sales	For the numerator, Stockhub believes that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, Stockhub believes that because it expects to reinvest almost all of its revenue back into the business over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, Stockhub suggests valuing its company using the EV/sales ratio. However, Stockhub feels that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple, rather than the EV/sales multiple.
In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use?	Year 5	Stockhub suggests that with sales forecast to grow exponential over the five year forecast period, it's best to use forward-looking data, rather than historic data. In regards to the growth-adjusted EV/sales multiple, for the sales figure, Stockhub suggests that in order to account for the forecasted exponential growth of the business, it's best to use one at the end of the forecast period (i.e. Year 5).
In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use?	Year 6 to 8, from now	Stockhub suggests that for the sales growth figure, it's best to use Year 6 to 8.
In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use?	42x	Stockhub's vision is for the Stockhub platform to be one of the most successful advertising platforms, and for that reason, it sees its closest peers as the owners of the leading advertising platforms. Those platforms are Facebook, Google Search, Youtube, Twitter, WhatsApp, Instagram and SnapChat. Note: Facebook, Instagram and WhatsApp are all owned by Meta Platforms, Inc, and Google Search and Youtube are all owned by Alphabet, Inc. The average multiple for those companies is 42x.
Which financial forecasts to use?	Stockhub	The only available forecasts are the ones that are supplied by the Stockhub company (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
What's the current value of the Stockhub company?	£4,000,000	As at 23rd February 2022, the Stockhub company estimates the current value of its company at £4 million.
Which time period do you want to use to estimate the expected return?	Between now and five years time	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.

Sensitive analysis

The main inputs that result in the greatest change in the expected return of the Stockhub investment are, in order of importance (from highest to lowest):

1. The growth-adjusted EV/sales ratio (the default value is 42x);
2. Stockhub peak market share (the default value is 2%).

The impact of a 50% change in those main inputs to the expected return of the Stockhub investment is shown in the table below.

Stockhub investment expected return sensitive analysis

Main input	50% worse	Unchanged	50% better
Growth-adjusted EV/sales ratio	28x	57x	86x
Stockhub peak market share	28x	57x	86x

Stockhub peers

Valuation table

Investments	Industry	Enterprise value/sales	1-year forward revenue growth rates (%)	Growth-adjusted enterprise value/sales ratio
Meta Platform Inc.	Internet content & communication	8.04x	19.20%	42x
Alphabet Inc.	Internet content & communication	7.80x	16.80%	46x
Snap Inc.	Internet content & communication	22.71x	39.00%	58x
Twitter Inc.	Internet content & communication	8.60x	21.20%	41x
Robinhood Inc.	Software - Infrastructure	17.69x	23.30%	75x

Note: five years after incorporation (i.e. April 2018), Robinhood’s valuation was $5.6 billion, and it was trading on a growth-adjusted EV/sales ratio of 43x.

Economic links to cash flow patterns

Economic links to cash flow patterns

Cash flow type	Introduction	Growth	Shake out	Mature	Decline
Operating	-	+	+/-	+	-
Investing	-	-	+/-	-	+
Financing	+	+	+/-	-	+/-

Notes

Note 1: Calculation of the global advertising market size

Global advertising revenue = World nominal Gross Domestic Product (GDP) x Advertising revenue as a share of GDP

= $85,000 billion (2020, The World Bank) x 1% (2015, Federal Reserve Bank of Philadelphia)

= $850 billion.

Other key assumptions: World nominal Gross Domestic Product and advertising revenue as a share of GDP are unchanged since 2020 and 2015, respectively.

Note 2: Calculation of the global, Active Investor-focused advertising market size

Global, Active Investor-focused advertising revenue = Global advertising revenue x Active Investors as a proportion of the total population

= $850 billion (2022, Stockhub) x 10.4% (2022, Stockhub)

= $88.4 billion.

Other key assumptions: Global advertising revenue and Active Investors as a proportion of the total population are unchanged since 2022 and 2022, respectively.

Note 3: Calculation of the UK, Active Investor-focused advertising market size

UK, Active Investor-focused advertising market size = UK nominal Gross Domestic Product (GDP) x Advertising revenue as a share of GDP x Active Investors as a proportion of the total population

= 2,708 billion (2020, The World Bank) x 1% (2015, Federal Reserve Bank of Philadelphia) x 10.4% (2022, Stockhub)

= $2.8 billion.

Other key assumptions: UK nominal Gross Domestic Product, advertising revenue as a share of GDP and Active Investors as a proportion of the total population are unchanged since 2020, 2015 and 2022, respectively.

Note 4: Income statement estimates

All figures in the Income Statement table are estimates.

Note 5: Calculation of the growth-adjusted EV/sales ratio

The growth-adjusted EV/sales ratio is calculated by dividing the EV/sales ratio by the 1-year forward revenue growth rate. For example, for the Meta Platforms growth-adjusted EV/sales ratio, the calculation is as follows: 8.04 dividend by 0.1920 ≈ 42.