EV sales growth has admittedly been slowing down recently, so that's a risk, particularly if the new administration rolls back or blocks some EV-promoting regulations (e.g., in California). That said, EVs remain a rapidly growing market. I could point you to 11% YoY growth in EV sales in Q3 and the tweet below showing the consistent growth in the number of DCFC charging ports. Even if growth slows down materially, PPSI is a first mover in what is a large market (relative to the e-Boost business size), so I would think the TAM for the business would still be plentiful.
Nathan has now used the word “massive” twice to describe eBoost’s opportunities. I didn’t look up the definition of the word, but I assume it is a positive. 😉
The valuation is based on an EV/EBITDA and EV/revenue basis, so you need to deduct the company's net cash from its market cap. If the company employs excess cash for new acquisitions and/or investments in the e-Boost business, the company's revenues and EBITDA are expected to grow.
Excellent update!
Are you concerned at all about the hybrid market eroding EV sales?
EV sales growth has admittedly been slowing down recently, so that's a risk, particularly if the new administration rolls back or blocks some EV-promoting regulations (e.g., in California). That said, EVs remain a rapidly growing market. I could point you to 11% YoY growth in EV sales in Q3 and the tweet below showing the consistent growth in the number of DCFC charging ports. Even if growth slows down materially, PPSI is a first mover in what is a large market (relative to the e-Boost business size), so I would think the TAM for the business would still be plentiful.
https://x.com/everyonehatesp1/status/1834568634246533543/photo/1
Nathan has now used the word “massive” twice to describe eBoost’s opportunities. I didn’t look up the definition of the word, but I assume it is a positive. 😉
How is a 50 mil mkt cap (post special dividend dist) equate to these calculations of estimated revenue and EBITDA multiples? Who’s off here ?
The valuation is based on an EV/EBITDA and EV/revenue basis, so you need to deduct the company's net cash from its market cap. If the company employs excess cash for new acquisitions and/or investments in the e-Boost business, the company's revenues and EBITDA are expected to grow.