| At the end of the FY23A financial year, the Group had achieved revenues of € 19.78 million, marking an 8.2% decline from the € 21.54 million recorded for the previous period. EBITDA, at € 2.48 million, recorded an increase of 18.7% compared to € 2.08 million in 2022, but was down on our estimate of € 3.90 million. Likewise, the EBITDA margin went from 9.7% in the previous year to 12.5% in 2023. The EBIT for the period, after depreciation and amortization of € 2.30 million, amounted to € 0.18 million, marking a clear improvement on the result of € -0.21 million in FY22A. The Net Income came in at € -0.46 million, in line with the previous year’s figure of € -0.52 million. In light of the results published in the FY23A annual report, we have adjusted our estimates for both the current and the following years. In particular, we now estimate FY24E revenues of € 23.00 million, and an EBITDA of € 4.80 million, corresponding to a margin of 20.9%. In the following years, we expect revenues to reach € 28.90 million (CAGR 23A-26E: 13.5%) in FY26E, with EBITDA equal to € 6.40 million (corresponding to a margin of 20.8%), up from € 2.48 million in FY23A (corresponding to an EBITDA margin of 12.5%). We conducted our valuation of the equity value of Websolute based on the DCF method and multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 45.5 million. Using market multiples, the equity value of Websolute was calculated to be € 40.5 million. The result gives an average equity value of approximately € 43.0 million. The target price is € 4.20, with a BUY rating and MEDIUM risk. |