Crowd Mobile (CM8) is a global technology company that monetizes products including infotainment, music, games and videos by leveraging digital influencers and social media channels through its proprietary technology platforms. The company was backdoor listed in January 2015 through Q Limited at a market capitalisation of $15m. CM8 has since raised $23.1m through several rights issues and institutional placements. Our DCF valuation, which is based our forecasts for cashflows from the core operations, is $0.24/share using a WACC of 13.9%, beta of 1.7, and terminal growth rate of 2.0%. The current share price implies a negative CAGR of 18.6% in free cashflows from FY18 to FY27 versus the CAGR of 2.8% in our base case DCF valuation. If CM8 were to match growth expectations for digital media, the DCF valuation would rise to $0.54/share, implying a CAGR in free cashflows of 11.4%.
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