What is the expected effect on the stock's valuation multiples (e.g., P/E, EV/Revenue) after this announcement?

Impact on valuation multiples

The July‑2025 revenue update pushes IQST’s annualised run‑rate to $400 MM – five months ahead of plan – and sets the stage for a $1 BN target by 2027. Because the “run‑rate” is a forward‑looking metric, the market will immediately re‑price the stock to reflect a faster growth trajectory.

• EV/Revenue: EV (market cap + net debt) will rise as the share price climbs, but the denominator (revenue) has already jumped 30‑40 % versus the prior guidance. In practice the EV/Revenue multiple will compress – the same or slightly higher EV now backs a much larger revenue base, pulling the ratio toward the low‑‑mid‑30s (vs. the 40‑plus range it was trading at before the beat).

• P/E: Assuming the July run‑rate translates into a proportionate lift in earnings (the company’s margin profile has been stable at ~12‑13 % of revenue), the forward‑looking earnings estimate will rise faster than the price. The market will therefore allow a modest multiple expansion on P/E – the stock will trade at a slightly higher forward‑P/E than before the announcement, but the increase will be limited because the price appreciation will already embed much of the earnings upside. In short, the forward‑P/E is likely to edge up a few points (e.g., from ~30× to ~33‑35×) rather than double‑digit spikes.

Trading take‑away

The revenue beat justifies a short‑to‑mid‑term price rally (10‑15 % upside) as investors price in the accelerated growth path. The compression in EV/Revenue signals that the stock is becoming “cheaper” on a sales basis, while the modest P/E expansion reflects confidence that earnings will catch up to the higher sales. A long‑position with a stop around 8‑10 % below the breakout level (≈ $0.95‑$1.00 if the current price is $1.10) captures the upside while protecting against a pull‑back if the market doubts the 2027 $1 BN target.