Freetrade share price

In general, I agree. But freetrade has benefitted from being crowdfunded, in that a lot of the growth has been by word of mouth from investors/champions. Many have tried, but not many have succeeded in this way (e.g. Brewdog). So while I don’t touch Crowdcube or Seedrs at all now, I still think it might be relevant/suitable for a few companies, of which freetrade is one.

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Hi again everyone!

As previously mentioned, I’m an amateur investor but I’m trying to find out the current price of Freetrade shares.

Any help is very much appreciated ¨̮

Hope everyone is well!

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It’s whatever someone is willing to pay for it. I think somewhere around £3 is reasonable

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Molten interim report is due less than 1 month (based on the historical timings) so that might give us a bit of a signal, think that has been mentioned as a reference in the past.

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Uh oh…

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I’ve read this whole thread and surprised to see some people saying estimated current share price between £2.50 - £3. I don’t understand their valuation approach.

First round of crowd funding was done in Aug 2020 @ £2.51 per share (B Shares)

Second round was done in Jan 2022 @ £9.25 per share. (368% appreciation in 18 months)

Unless the company has done some fundamental debacle, I don’t see any reason for SP to come down to £3 level. On the contrary we know the firm has done well since 2022 so I would expect the current SP well above the last funding round ie 9.25.

Any counter arguments?

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This links through to the Crowdcube (bleurgh) funding history. Each date has its own page showing the share price for that funding round:

https://www.crowdcube.com/companies/freetrade

This was 22-06-2023

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£3 is based on a pretty standard 10x revenue multiple. £13m (H1 24 reveneue) * 2 (full year) * 10 (revenue multiple) = £260m valuation = ~£3.00 share price. There aren’t any big growth catalysts that I’m aware of to justify a higher multiple. EU canned, crypto canned, no options etc.

Also don’t forget about dilution, I’ve been diluted about 33% since my first investment.

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Well Robinhood is currently valued at 20x Revenue - so not sure its as simple as using a standard 10x

That’s a little outdated. Their TTM sales are ~$2.3b so it’s 10x. Actually even less on an enterprise value basis since last I saw they had around $5b of their own cash on hand. They are much more mature and growth is expected to slow to single figures so still not a simple comp.