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 reported FY18 revenue of $38.6m and underlying EBITDA of $3.6m, in line with the guidance it provided the market in June. The company has also announced it will ask shareholders to approve a change of name to Crowd Media Holdings at the next AGM. We have made minor adjustments to our FY19 and FY20 forecasts which we released in our initiation report of 8 August. Having rolled over to the FY19 financial year, our DCF valuation is $0.26/share (previously $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 10.7% in free cashflows from FY19 to FY28 versus the CAGR of 3.0% in our base case DCF valuation. If CM8 were to match growth expectations for digital media, the DCF valuation would rise to $0.60/share, implying a CAGR in free cashflows of 11.7%.
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