We are initiating coverage on Voxtur Analytics Corp. (VXTR or the Corp.) with a Buy rating and target price of $2.90/share.
Voxtur Analytics Corp. offers a full-service digital valuation suite allowing for the delivery of data to investors, lenders, consumers and government entities. VXTR uses proprietary SaaS-based applications in such a way that it is de facto a one-stop-shop for efficient access to real estate data, and essentially the entire real estate process.
VXTR’s typical users are national lenders, credit unions and regional banks, entities performing loan servicing, government agencies, private investment funds, due diligence firms, mortgage insurance companies, rating agencies, and valuation companies.
According to management, VXTR’s technology can deliver a 20% cost reduction in appraisals, with a 50% reduction in the required time to perform such tasks. VXTR’s efficiency results in 95% of processed originations being clear-to-close in 10 days and 95% of title ommitments being delivered within five days. Ultimately, 97% of processed originations are clear-to-close in less than five days from receipt of title commitment.
VXTR currently trades at 13.4x our EV/EBITDA estimate for 2022 compared to its peer average of 25.9x. Using an DCF valuation model, our intrinsic value/share estimate of $2.90 assumes a discount rate of 9.2%. VXTR’s shares currently trade at a 72.1% discount to our intrinsic value estimate per share.
Target Price Derivation
Our 12-month target price of $2.90 is derived by using a DCF model, with a WACC of 9.2%, which generates a $2.90/share intrinsic value.
Our intrinsic value implies an EV/EBITDA multiple of 21.0x using our 2023E adjusted EBITDA of $71M, and an EV/EBITDA multiple of 14.6x using our 2024E adjusted EBITDA of $102M.
We are initiating coverage on Voxtur Analytics Corp. with a Buy rating and target price of $2.90/share.