ADG Sees Further Upside for YuuZoo

Alpha Deal Group (“ADG“) releases a report on Yuuzoo (stock quote: AFC.SI) valuing its share at S$1.40 in view of recently signed agreements and YuuZoo’s expansion into a B2C business model. See report here

Some highlights of the report:

  • In 2014 YuuZoo saw ecommerce as the largest revenue contributor. ADG expects this growth in ecommerce to continue, and also to generate new revenue from higher margin advertising and games.
  • YuuZoo, through its partnership model, is able to quickly grow its international business. With new franchise operations in UK, Korea, Turkey, Central and Eastern Europe, games (mobile and e-sports) launching with strong partners in China, JV operations commencing in Nigeria, with Africa’s largest TV network – NTA and a distribution agreement with Etisalat.
  • ADG valued YuuZoo using revenue and EBIDTA multiple analysis. The report notes that YuuZoo currently trades at an Enterprise Value/ revenue multiple of 1.3x and Enterprise Value/ EBIDTA multiple of 4.2x.
  • Assuming consistent revenue and earnings, ADG, based on their global peer comparison, applied 5.5x multiple the 2016 estimated revenues and 16.5x multiple to the 2016 estimated EBIDTA and calculated a fair value of US$ 1 or S$1.40 per YuuZoo share.

IMPORTANT: Please note that this article is merely for reference and should not be viewed as a stock recommendation. Writer of does not hold any stock position of this company and he/she is certainly not making recommendation to existing or potential investors to trade on this counter. The report is entirely as well as originally prepared and released by ADG and YuuZoo.

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