Stock Performance

and Valuation Relative to Comparables

At current €5.0 stock price, DHH has a €7.4mn market capitalization which implies very cheap multiples: 3.1x, 3.9x, 3.2x, EV/EBITDA EV/EBIT, and EV/OpFCF respectively, calculated on 2020E pro-forma figures (i.e. gross of listing M&A costs)

This situation is the result of the extremely low traded volumes that make almost totally meaningless these “apparent” implied multiples. Indeed, In the latest year DHH has cumulated only 39.3k shares traded (€229k share turnover value) in 74 days of active trading (i.e. it has not traded for 177 days) as everybody was waiting for bonus shares allocation. Indeed, 80% of IPO subscribers has maintained its shares for the latest three years (results announced back at the start of September).

Looking at European field, the Spanish company Gigas Hosting is similar to DHH in terms of business model, size and listing on “growth” MTFs. That said, such Spanish company boasts a €30mn market capitalization and is currently trading at 2.0x, 11.8x, 30.0x, 4.6x EV/Sales, EV/EBITDA, EV/EBIT, P/BV 2020E respectively, much higher than DHH

Based on 2019E-20E estimates provided by Value Track, DHH trades at a wide discount vs. selected domestic peers, i.e. SaaS companies listed on AIM Italia stock market. At current market price DHH is trading on average at ca. 50% on reported figures and ca. 60% on a pro-forma basis

DHH Stock Performance

DHH Stock Market Multiples relative to Selected Comparables

Company
EV / Sales (x)
EV / (OpFCF b.t.) (x)
2019E
2020E
2019E
2020E
MailUp
1.0
0.8
17.5
10.9
Prisimi
1.7
1.3
12.8
8.7
AMM Group
1.2
0.8
8.0
3.9
Maps Group
1.5
1.2
8.7
6.5
Neosperience
4.2
2.9
18.2
12.3
Median
1.5
1.2
12.8
8.7
Average
1.9
1.4
13.0
8.5
DHH PF
0.6
0.5
4.6
3.9
DHH vs. Med.
-63%
-66%
-64%
-55%
DHH vs. Avg.
-71%
-71%
-65%
-54%
Source: Value Track equity research sept. 2019