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NEW YORK, March 11, 2022 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Medigus Ltd. (NASDAQ:MDGS). The in-depth 22-page initiation report includes detailed information on the Medigus's business model, services, industry, valuation, management, and risks.
The full research report is available here . Highlights from the report include:
Large Market Opportunity
- Large Total Addressable Market (TAM) - Even though the company is at the nascent stage of building and acquiring different businesses, the total market opportunity targeted by these businesses exceeds over $500 billion. We expect this value to continuously grow over the next decade expanding the use case of the services and products provided by the portfolio companies. We believe that such a huge market opportunity across a diversified portfolio of businesses provides a potential long-term growth trajectory for the company.
- Focusing on the Industries of the Future - Medigus is focusing on the industries of the future, be it electric vehicles & micro-mobility solutions or its investment in modern-day online technologies such as marketing technology, virtual events, and blockchain technology. By focusing on the future and anticipating needs and trends, Medigus continues to invest in disruptive technologies providing scalability and rapid growth. The company has created a portfolio of businesses that are focusing on the megatrends or the industries of the future creating a forward-looking business model.
- Value Unlocking Underway - After a successful cash raise last year through the issuance of ADRs, the company is further expecting to unlock value in its portfolio companies through initial public offerings, and mergers & acquisitions. The company's partially owned subsidiary Jeff's Brands - A FBA aggregator has submitted public F-1 registration statement with SEC for a proposed U.S. initial public offering. Similarly, another major investment by Medigus in an online ticketing and event management platform, Eventer Technologies Ltd. has also filed a confidential draft registration statement with SEC for proposed U.S. initial public offering.
- Valuation Unassuming – We have valued Medigus using Sum of the Parts (SOTP) as our preferred methodology. Even though the portfolio companies have a lot of potential given the high TAM and disruptive markets, there is still considerable risk present given the limited operating history and lack of profitability. EV & Micro-mobility businesses contribute 42% of the overall company value in our model while online technologies contribute 36% of the total value. We have incorporated a 40% holding company discount accounting for indirect control, as well as a liquidity discount. Based on our assumptions, we have valued Medigus Ltd. at $3.47 per share, contingent on successful execution by the company.
Medigus Ltd.
Incorporated in the State of Israel in 1999, Medigus is a technology-oriented company involved in developing innovative solutions for large-scale market applications. The company operates under the broader market segments of online technologies, electric vehicles & micro-mobility, and healthcare.
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About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
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Disclosures:
Diamond Equity Research LLC is being compensated by Redchip Companies Inc. on behalf of Medigus Ltd for producing research materials regarding Medigus Ltd., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 03/11/2022, the Redchip Companies Inc. had paid us $27,000 for our company sponsored research services on behalf of Medigus Ltd, which commenced 01/21/22 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The Redchip Companies Inc. on behalf of Medigus Ltd has paid us $2,500 for non-research related services as of 03/11/22 consisting of presenting at an investment conference. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page . This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective SEC filings for Medigus Ltd.
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Diamond Equity Research
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