guess i am amazed by these responses but this is why i asked. i argued the
towers can be taken down and the steel sold and they can be converted to cash,
therefore, they have more value.
maybe not....
----- Original Message -----
From: Jesse DuPont
To: AnimalFarm Microwave Users Group
Cc: memb...@wispa.org
Sent: Monday, January 6, 2020 9:48 AM
Subject: Re: [AFMUG] Company Valuation
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
Like us! facebook.com/celeritynetworksllc
Like us! facebook.com/celeritybroadband
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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