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…
[Free registration needed]
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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.
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You are missing the third round they did in 2023 @ £2.60 per share
@WBofGreenInvestment true but HOOD is listed on the NYSE where ratios/valuations are much higher than in LSE
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Likely a reflection of the fact that the average American is more likely to invest in the stock market compared to Brits, and who are generally more optimistic and enthusiastic in nature, resulting in increased trading volumes and higher valuations. It’s the main reason why I focus on the US markets rather than the UK.
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Where does this figure come from, is there a document/post somewhere that you could link us to? Cheers
What is the price per share
Hey! No idea what exactly you want to ask but maybe this helps: Freetrade share price
Private companies like Freetrade don’t have a current share price. It’s always ‘at best’ a guess.
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That is a pretty awful valuation surely
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I remember once it was valued at 650m or so?? Or am i wrong?
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Yep, I’m getting about 10% of what I invested.
Someone’s sat somewhere laughing at us. I’m assuming there is no way to collectively push against this? Anyone know what % privately equity is in Freetrade?
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Me too, well it’s 10% more than I thought I was going to get…
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