00:00Why would anyone pay 10.9 times revenue for a company that sells rings?
00:06At the top of the proposed range, our RAS fully diluted valuation would be $15.6 billion.
00:13By our calculation, that equals 10.9 times trailing revenue of roughly $1.4 billion.
00:22Garmin offers one reference point, not a peer set.
00:25Its market value is about $54.9 billion against roughly $7.2 billion of annual revenue, or 7.6 times.
00:37Whereas implied multiple is higher despite most current revenue still coming from hardware.
00:44The multiple only makes sense if the subscription keeps growing.
00:48Recurring membership revenue must become a larger and more important part of the business economics.
00:55Watch the full breakdown, tap the related video.
