Page 29 - Listing Partners Pre Listing Offering
P. 29
Valuation
(All numbers are expressed in US dollars in the valuation part, for the conversion of the Danish kroner to US dollar exchange rate 6,78 is used).
Peers
Company Market Value Million USD P/S P/E EV/EBIT
Visa Mastercard PayPal Worldpay Shopify Square
First Data Adyen WireCard Worldline Ingenico
EVO Payments Bsquare Average
399 765 288 840 135 932
42 357 37 518 34 493 29 979 23 450 20 793 13 136
5 831 2 508
15
40,7 32,7 50,8 41,2 66,9 70,5
3408,1 167,7
-387,6
-970,8 30,5 31,3
18 5,0 135,7 59,9 49,9 7,6 98,6 75,1 2,2 32,5 33,4
Payments is a hot sector as it is included in the sector of fintech, just by seeing the average valuation on P/S to be 10,2 gives an indication that revenue in this sector is highly valued. On P/E and EV/EBIT is there another story as the multiples as P/E are on 188,6 and -64,8 on EV/EBIT. Generally, you can see that it is Shopify, EVO Payments and Square who have huge negative numbers and that Worldpay has a P/E of 3408,1, if those anomalies are excluded falls the averages for EV/EBIT on 63,7 and for P/E on 62,6. It is certain to say that smaller players in this sector are traded at high valuations in relation to their profits, even the more established players MasterCard, Visa, and PayPal is trading at high multiples.
Further, we can see that profitability is reflecting the valuations in the previous table as the major margin is found with Visa and MasterCard, which is understood by their position in the market. The rest har lower margin which is sensible as they are more in a growth phase and don’t hold the same corner position in the payments market as Visa and Master- Card have. Profitability is also very slim for the most part, especially on return on assets where Visa and MasterCard still stand out.
3
19,4 19,3 8,8 10,8 35,0 10,5 3,2 14,2 10,3
-557,2 -919,0
4,4
0,2
11,2
-44,1
-1,1 -0,9
188,6 -64,8
-120,5