Projected Valuation – December 2020
|
One Time Revenue Value - $Millions |
|
| Gross Margin from One Time Revenue (from P&L) | $19 |
| Total Gross Margin (from P&L) | $48 |
| Ration of GM from One-time Revenue to Total GM | 40% |
| TOTAL EBITDA (from P&L) | $37 |
| EBITDA Attributable to One Time Revenue | $15 |
| Multiplier | 8 |
| Value of One-Time Revenue - $Millions | $117 |
|
Recurring Revenue Value |
|
| Recurring Revenue at 12/31/2020 - Annulaized | $37 |
| Multiplier | 6 |
|
Value of Recurring Revenue - $Millions |
$221 |
|
Value of Intellectual Property - $Millions |
$35 |
|
TOTAL COMPANY VALUE - $Millions |
$373 |
This table shows how the projected value of the company at the end of 2020 was calculated:
The 2020 gross margin created by one-time sales (hardware, supplies and services) is $19 million
The ratio of one-time gross margin to overall gross margin was calculated to be 40%
So the EBITDA attributable proportionally to One Time Revenue was calculated to be $15 Million
A multiplier of 8 is thought appropriate, taking into account that the engine that produces One-Time Revenue also produces between 20 and 40 cents of recurring revenue every year thereafter.
This yields a value of $117 million for the one time revenue engine.
The annualized recurring revenue being generated in December 2020 is $37 Million
A multiplier of 6 is in the middle of the conventional range for a quality recurring revenue stream
This values the recurring revenue component at $221 Million
The intellectual property is more subjective. G4S paid $25 Million in 2008 for what we believe was far less valuable than will be the IP for BluSKY and the Person Reader. So it was valued at $35 Million.
This all adds up to a total valuation for BluBØX of $373 million at the end of 2020.