In today’s briefing:
- Unisound AI Technology IPO Valuation Analysis: SaaS Valuation Multiples Appear Rich For The Stock
Unisound AI Technology IPO Valuation Analysis: SaaS Valuation Multiples Appear Rich For The Stock
- Unisound AI Technology, a Beijing-based AI unicorn, filed to go public in Hong Kong. I used a diverse peer group of domestic AI companies to come up with IPO valuation.
- From a peer group perspective, I arrived at an IPO valuation close to ~RMB12b (or ~$1.7B), using a ~15x EV/CY22 Revenue to my 2023 revenue estimate of RMB780m (+30% y/y).
- However, I believe SaaS valuation multiples may appear rich for the stock, keeping in mind non-recurring revenue and the high hardware cost in the total cost of sales and services.
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