Re: [AFMUG] Company Valuation

[Jesse DuPont]

My 1.7 cents worth - perhaps even less - of an opinion is "maybe," but generally, no. The amount of cash you'd get out of taking down the towers doesn't seem to be anywhere near their replacement value by the time you take into account deconstruction in a reusable way. Besides, the revenue the business generates is 100% dependent on them (if you're wireless only). In the end, the revenue the business generates today, with all past expenses, is the revenue. In other words, whether you have $3.6M in towers or $600K in towers is kind of irrelevant because the revenue is what it is. Even if you had a significant income from tower rent to other lessors, that income is still part of you revenue. There might be a limited argument that if you also owned the land they're on, there is additional worth there because it's real property, but unless that property were in a high value location, its value is still only related to the revenue it generates.

Jesse DuPont

Network Architect
email: jesse.dup...@celeritycorp.net
Celerity Networks LLC

Celerity Broadband LLC
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On 1/6/20 8:07 AM, CBB - Jay Fuller wrote:

 

Lets say for easy math purposes you bill approximately 1.5 million annually.

 

I've heard 1.5 times annual revenue thrown around for a valuation purpose.  There is a lot more to this figure but it's a place to start.

 

So, if your company billed 1.5 million, you'd say your valuation was around $2.25 million.

 

If you had 90 towers on your network - and you owned 60 of them (the steel, not the land they're on) , would you consider your network

worth more than if you rented all 90?

 

My take on this is yes, they could all be taken down and converted to cash, so the fact we own towers vs. rent them makes our network

more valuable.

 

What say you?

 

Thanks.

 

 

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