GitLab Inc., the a bit under the radar open-core, open-source Infrastructure as a Service code writing collaboration, IaaS software depository is undervalued by circa 57 %.
According to Wolfteam Ltd. www.wolfteamedge.com, where I am the sole proprietor, GitLab's intrinsic worth is 12 billion USD in the next 5-7 years, compared to the current circa 5 billion USD GitLab's market capitalization. In more than 12 years from now, Wolfteam Ltd.'s view is that GitLab Inc., if managed properly and with above average speed of execution, could be worth between 20 billion USD to 37 billion USD.
GitLab and GitHub which was acquired for 7.5 billion USD by Microsoft are the by far the largest firms, according to market share, in the Infrastructure as a Service market, which is by far the largest part of the cloud computing market. Cloud computing as a market, according to various estimates could report revenue of 700 billion USD in the next 5-7 years.
However, as with most young technology firms, as GitLab's revenue grows quickly, GitLab will most probably start getting closer to and eventually break even and start making profit.
So the current valuation of the cloud firm GitLab of Wolfteam Ltd. is based mostly on assumed, probabilistic net profit cash flows, which are going to possibly occur in the future. That said, Wolfteam Ltd. stands by its analysis, given the current both industry and macroeconomic circumstances.
www.wolfteamedge.com
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