Does this not reach the same conclusion?
It can do yes. It’s just another way to approach answering the same question.
Possible comparative: Robinhood had 4m users, 150bn transaction vol and 3.4m rev when it raised at a 5.2bn pre/5.6b postmoney valuation in 2018 (sources here and here ). That gives a value per user of ~$1300 (pre money).
The only one of those numbers I know for Freetrade is 12k users. We might be generous and say that another 50k are onboard by the time the next raise happens, and that they’re all actively using FT. So 62k users. Robinhood’s value per user would imply a value per Freetrade share of £1.60 ish. (But would be very interesting to hear FT’s transaction volume, rev, % instant vs basic, stuff like that!)
Words from an investor:
"1. Our business is one requiring patience. It has little in common with a portfolio of high-flying glamour stocks and during periods of popularity for the latter, we may appear quite stodgy.
It is to our advantage to have securities do nothing price wise for months, or perhaps years, while we are buying them. This points up the need to measure our results over an adequate period of time. We suggest three years as a minimum."
Warren E. Buffett
Our Performance in 1963, 18th January 1964
What have I missed