is it worth it


The company first floated on the TASE (in the early 1990s), but it was far from supplying the goods

(44,770 + 0.45%)

 Has lost its results for several years, but in 1994 it made an exit and sold its subsidiary Nayscom for a huge sum of $ 53 million.

Then, too, business began to recover, and the company translated it into fund raising. In 1996, it raised on Wall Street and in 1997 raised it again, and then found itself in a serious crisis. But in the past 10-15 years it has known only one direction – the company’s share is riding on business success, and it has risen six-fold in 10 years and four times in five years. And if you want to savor theoretical profits – those who invested in the company in the first IPO in Tel Aviv, earned about 100 times.

The share price hikes have bypassed analysts’ target price in recent years, and then they raise the target price again, and the share is once again above its target price and so on. If this sounds like a process that inflates a bubble, it’s important to emphasize – NICE is a real company. It sells more than $ 1.4 billion, will sell for $ 1.57 billion this year; Earned $ 300 million and is expected to earn $ 330-340 million in 2019.

But does a profit of $ 300 million justify a value of $ 7.7 billion?

Wait, this is basically not an accounting gain or profit in the accounting reports, this non-GAAP non-GAAP profit (immediate explanation). In its statements the profit is $ 160 million. Does this profit justify such a value?

Analysts are optimistic, but even if the future earnings multiplier is considered (an investment parameter that relates to the value of partial profit in the coming year), it is a 22 or higher earnings multiplier – not low. What is important – accounting or not?