Freelancer impressive but overpriced

James Marlay

Livewire Markets

Freelancer impressive but overpriced. Trevor Sykes has taken a look at Freelancer (FLN) following the highly successful IPO. Freelancer is a clear leader in the online jobs market holding the top position in terms of traffic by a long way. In essence it has created a market place skills available across the world to any employer. But so far the business is only marginally profitable with only 2.5 per cent of the $18.3 million revenue falling to the bottom line. On conventional valuations things aren't pretty. The $470,000-odd NPAT equates to earnings of 0.1¢ a share, which means that at 50¢, the stock was priced at 500 times earnings. When it hit $1.80, the price/earnings ratio blew to 1800:1. So clearly investors in the IPO are not looking at traditional measures for this investment. Interested to hear peoples thoughts on appropriate valuation methods for stocks like FLN. (VIEW LINK)


James Marlay
Co Founder
Livewire Markets

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