logo
bullish

Real Estate Investar

Recent Transaction Multiples Highlight Proptech Demand

29 Views08 Apr 2022 08:15
Issuer-paid
SUMMARY

PropTech Group (ASX:PTG) is a property technology SaaS company with a fast-growing and market-leading position in customer relationship management (CRM) systems with Australian and New Zealand residential real estate agents, and a small but growing position in the UK market. Industry interest in the proptech sector has been underscored by two recent transactions: Domain Holdings Australia Ltd’s (ASX:DHG) acquisition of real estate campaign management technology platform Realbase for $180m plus an additional up to $50m in earn-out consideration, and Reapit’s acquisition of real estate customer relationship management platform Console Group. The transactions have been completed at an estimated 8.0x forward revenues, which in RaaS’s estimation puts these as the upper end of transaction multiples for privately-held companies. In our view, these transactions highlight the demand for property technology and underscore the value that is being presented in the listed sector, particularly in the small and micro-cap space. We have revisited PropTech’s listed peers and this shows that the listed peer group is trading on an EV/Sales median, based on FY21 revenues, of 9.0x and a forward EV/Sales multiple of 7.4x. PTG is trading at a 59.5% discount to its peers on a forward multiple and at a 62.5% discount to the transactions multiple, underscoring its relative value.

Begin exploring Smartkarma's AI-augmented investing intelligence platform with a complimentary Preview Pass to:
  • Unlock research summaries
  • Follow top, independent analysts
  • Receive personalised alerts
  • Access Analytics, Events and more

Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.

Upgrade later to our paid plans for full-access.

or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
chart-bar
Logo
Research as a Service (RaaS)
Insightful Financial Models and Research Analysis
AustraliaEquity Bottom-UpThematic (Sector/Industry)
Price Chart(Sign Up to Access)
analytics-chart
  • Loading...

Copyright © 2022 Smartkarma Innovations Pte Ltd. All Rights Reserved. v3.44.3

x