Enterprise ICT valuation comps for June 2023

Dashboard containing:

• Monthly and annual share price movements for main listed stocks
• Key earnings multiples
• Forward earnings multiples vs forward growth estimates
• Share price movements tracked over last twelve months

Commentary

Key developments

Most Enterprise ICT stocks in Australia and New Zealand are down over the last year. Overall, economic growth is expected to be sluggish relative to 2022, creating uncertain performance for Enterprise ICT equities. Some of these companies are growing through acquisition rather than organically, and are exposed to a downturn.

Comms Group

Comms Group stock is a micro-cap which explains its extreme volatility, with the stock surging 35% last month. In June, investors may have reacted favourably to the company announcing it is extending its existing supply partnership with Vodafone to include a number of new services.

Webcentral

Webcentral stock experienced a wild uplift in the space of a few days in early June and late May, where the stock increased nearly 86% between May 30 and 2 June. This prompted the ASX to submit an inquiry, which Comms Group’s answered stating it had no knowledge on any information that could explain the uplift.

Symbio

Symbio’s stock rose around 15% in June without any price sensitive company announcements. The stock is now up over 30% in the last six months, after a forgettable 2022 when the stock lost the majority of its value.

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