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The dataset includes 222 European public tech companies in the sector “Software (System & Application)”, many of them listed on secondary markets like AIM Italia, AIM UK, Euronext Growth, Nasdaq First North, NewConnect Poland, MaB Madrid

Milan, 14 March 2018. DHH S.p.A. (“DHH”) (DHH.MI | WDHH21.MI) (ISIN shares IT0005203622 | ISIN warrants IT0005203689), a tech company whose mission is to create the “Internet Platform of the Emerging markets of Europe”, announces that, analyzing the dataset created by Prof. Aswath Damodaran (Stern School of Business, New York University), DHH is trading at a 48% discount vs its European peers in the sector “Software (System & Application)”.

Numbers of firms EV/Sales EV/Ebitda EV/Ebit P/E Geography
222 4,83 19,95 26,59 80 Europe
1075 6,36 22,54 33,5 98,42 Global
255 7,27 22,62 35,02 209,66 US
DHH 2017E 1,46 16,5 23,2 41,1 Europe
DHH 2017E vs EUROPE -69,77% -17,29% -12,75% -48,63%
DHH 2017E vs GLOBAL -77,04% -26,80% -30,75% -58,24%
DHH 2017E vs US -79,92% -27,06% -33,75% -80,40%
DHH 2017EPF 1,34 10,2 12,7 19,3 Europe
DHH 2017EPF vs EUROPE -72,26% -48,87% -52,24% -75,88%
DHH 2017EPF vs GLOBAL -78,93% -54,75% -62,09% -80,39%
DHH 2017EPF vs US -81,57% -54,91% -63,74% -90,79%

Source: http://pages.stern.nyu.edu/~adamodar/

The dataset includes 222 European public tech companies in the sector “Software System & Application”, many of them listed on secondary markets like AIM Italia, AIM UK, Euronext Growth, Nasdaq First North, NewConnect Poland, MaB Madrid.

Taking into account the estimated pro-forma results of DHH the discount vs European peers is 75%.

The table includes also the data of the 255 public tech companies listed in the US and the ones of the 1075 public tech companies listed in the different world Stock Exchanges, in both cases in the sector “Software (System & Application)”.

DHH trades at a 58% discount vs its global peers and at a 80% discount vs its US peers.

DHH 2017E refers to the estimates by Value Track and 2017EPF refers to the estimates by Value Track related to the consolidated pro-forma results.

(€’000) 2017EPF 2017E
Total Revenues from Sales 5.813,09 5.340,79
Total Value of Production 6.126,32 5.655,79
EBITDA 766,71 471,89
EBITDA margin 0,13 0,09
EBIT 615,24 336,89
EBIT margin 0,11 0,06
Pre tax profit 583,14 302,09
Net Profit (Loss) 527,33 247,00
NOSH (mn) 1,42
Mkt. Price (€) 7,15
Market Cap (€mn) 10,153
NFP (€ mn) 2,35
Enterprise Value (€mn) 7,81
EV/Sales 2017 1,34x 1,46x
EV/EBITDA 2017 10,2x 16,5x
EV/EBIT 2017 12,7x 23,2x
P/E 2017 19,3x 41,1x
Source: Value Track Estimates

The consolidated pro-forma p&l includes the full results of the acquisitions made during the year, while the official consolidated p&l includes only the pro-quota results after the acquisition date of the new companies.

Furthermore, all direct and indirect costs related to being a company publicly listed on the Italian Stock Exchange have been deleted in the pro-forma consolidated p&l, together with all direct and indirect costs related to M&A and extraordinary activities.

The consolidated pro-forma has been prepared:

  • to have a comparable representation to the consolidated p&l
  • to have a representation useful to compare DHH to its private peers, which are not listed and don’t afford this kind of costs.

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