Thursday, November 7, 2013

The new RM1 billion company?

In many cases, I would use market capitalisation to value a company's worth. After all, it is best to evaluate how much the market values a company assuming that the market is efficient - hence the efficient market hypothesis.

However, we know that market is not always efficient. In fact, it is not efficient a lot of times, and we take advantage of that.

I have just read that iProperty, the invested company by Catcha has just gone past RM1billion in market cap. Is it worth that much? Now, my question is that is has been a business that has been operating for quite some years, and in fact has been listed since 2007 in ASX. I don't remember it makes money in any particular year and in fact look at its accumulated losses.

The latest 6 months P&L reads as such...

To me, this is not a company that can be worth RM1 billion - in fact very very far unlike Jobstreet and MYEG. Those 2 are really in their own league, but iProperty is not. IProperty has a decent number of competitors whom may be competing very hard such as, In properties, sellers, agents are posting up units for sale for free - unlike a job website. I really can't see much that to be as valuable as it is mentioned what is provided by the market.

Note: I do like though for its informative website...

1 comment:

dragonball said...

Have to built up your tariff bases first before your start to charges your customer.

Like microsoft window they let you used even if illegal they want to increase the user bases later they will charges you for the software