ReadCloud Valuation

Q: What is the Fair Price of RCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RCL (A$0.08) is trading below our estimate of [[fair value]] (A$0.8)

Is RCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCL (A$0.08) is trading below our estimate of fair value (A$0.8)

Significantly Below Fair Value: RCL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCL?

Key metric: As RCL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RCL. This is calculated by dividing RCL's market cap by their current revenue.
What is RCL's PS Ratio?
PS Ratio	1.1x
Sales	AU$11.28m
Market Cap	AU$12.43m

RCL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	-7.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does RCL's PS Ratio compare to its peers?

The above table shows the PS ratio for RCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	6.2x
CAG Cape Range	19.3x	n/a	AU$12.3m
CF1 Complii FinTech Solutions	1.8x	n/a	AU$13.2m
JCS JCurve Solutions	0.9x	n/a	AU$11.2m
Z2U Zoom2u Technologies	2.6x	n/a	AU$15.1m
RCL ReadCloud	1.1x	13.7%	AU$12.4m

Price-To-Sales vs Peers: RCL is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (6.2x).

Price to Sales Ratio vs Industry

How does RCL's PS Ratio compare vs other companies in the AU Software Industry?

15 Companies	Price / Sales	Estimated Growth	Market Cap
ADA Adacel Technologies	0.6x	10.4%	US$18.35m
MOQ MOQ	0.3x	n/a	US$15.57m
DUB Dubber	0.5x	n/a	US$12.64m
GTI Gratifii	0.5x	32.4%	US$9.08m

15 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: RCL is good value based on its Price-To-Sales Ratio (1.1x) compared to the Australian Software industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

What is RCL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RCL's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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