I have commented on this before, but I don’t understand the point of focusing on valuation multiples and growth percentages for a business of this scale and a market cap of around €10 million. It gives the reader the impression that the company is in a “normal” stock market condition and that investors are trading and pricing it based on standard valuation multiples. I highly doubt that this is the case in practice for a €10M market cap. I believe a useful assessment would be to weigh this €10M value against a potential turnaround case versus the risk of a need for further capital injections or even the business withering away toward bankruptcy. Similarly, regarding Gartner analyses, it would be valuable for the reader to consider the reasons why these status evaluations do not translate into revenue and business growth. A soft operating environment is no excuse for this – the price of the company’s products is so low that for large potential client companies, it is a rounding error in their continuous business development budgets.
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