I am always a broken record when it comes to valuations.  5-6X Ebidta.  The 
value of the OSP could be added to that figure depending on its condition.  
Fiber lasts forever so depreciation is not a factor for the fiber, it is for 
the electronics.  

So lets say you had 5000 customers.  They are all paying you $60/month.  
$3.6M/year.  After all your expenses you have $720K bottom line income.  So 
$4.32M value on the bottom end.  Add something for assets assuming they are 
owned free and clear.  Clearly at least $5M.  I used to buy WISPs for $1K per 
customer.  Obviously a fiber customer is worth more.  

You could also do net present value of future cash flows.  Depending on the 
initial investment, say $7.5M the NPV could be higher than the original 
investment amount.  

So based on all that, $1000-$2000 per customer could be some brackets for the 
expectations.  

From: Gino A. Villarini 
Sent: Saturday, March 13, 2021 9:33 AM
To: AnimalFarm Microwave Users Group 
Subject: [AFMUG] Ftth ISP valuation

Hey folks,

 

What would be the valuation for a ftth ISP serving a tier 2 city.  85% aerial 
plant to the customer. 

Gino Villarini 
Founder/President
@gvillarini
t: 787.273.4143 Ext. 204 
                 
www.aeronetpr.com | Metro Office Park #18 Suite 304 Guaynabo, PR 00968



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