Following an exciting week of portfolio company updates last week, analysts at SP Angel say Tekcapital’s shares are 55% undervalued compared to their portfolio’s NAV.
SP Angel highlights market conditions and the impact on Tekcapital’s listed portfolio holdings, Innovative Eyewear and Belluscura. Considering the impact of market volatility on Tekcapital’s NAV, SP Angel has worked YTD VWAP prices into Innovative Eyewear and Belluscura NAV and says, “we could expect additional upside in the future.”
Privately held portfolio companies MicroSalt and Guident are valued on third-party valuations and recent funding from Tekcapital.
SP Angel calculates Tekcapital’s NAV to be 31.7p per share, including the recent £2m placing.
SP Angel analysts wrote in a note:
“TEK’s current share price is 15.45p, translating to a market cap of ~£25.5m, ~55% lower than the baseline NAV calculated above. We would also suggest that the current value potential of these portfolio companies, given the additional investment since the last third-party NAV valuation, has increased significantly.”
Tekcapital is set to report full-year results in May.