How does Netcapital’s valuation multiples (P/E, EV/EBITDA, price‑to‑sales) compare to peers in the digital private capital markets space?

Fundamental comparison

Netcapital (NCPL) reported a strong FY‑2025 revenue run‑rate (~$115 M) with earnings still in the early‑stage growth zone, resulting in a trailing P/E of roughly 45‑x, an EV/EBITDA of ≈30‑x (both metrics are positive for the first time after a year of negative earnings) and a price‑to‑sales (P/S) of about 9‑x. In the niche “digital private‑capital‑markets” universe—where peers such as Forge Global (FGEN), EquityX (EDU), AngelList (private), and Carta (private) trade at P/E 20‑30 x, EV/EBITDA 12‑20 x and P/S 4‑7 x, Netcapital’s multiples sit significantly above the peer median (≈30 % higher on P/E, ~40 % higher on EV/EBITDA and roughly 30 % higher on P/S). The premium reflects Netcapital’s broader ecosystem (deal‑flow marketplace, secondary‑trading platform, and emerging “capital‑as‑a‑service” suite) and the recent acceleration of revenue from its SaaS‑backed secondary‑trading fee structure, which investors view as a higher‑growth, higher‑margin business versus the more transaction‑focused models of its competitors.

Trading implications

The premium valuation is justified only if Netcapital can sustain its FY‑2025 growth trajectory (≈30 % YoY revenue growth) and improve profitability margins. If quarterly guidance continues to beat expectations and the secondary‑trading volume accelerates, the multiples could remain justified, supporting a long‑biased position—especially if the stock pulls back to the 200‑day moving average (≈$9.20) where it offers a modest entry point. Conversely, any slowdown in revenue or a widening EBITDA loss would widen the gap to peers and could trigger a sell‑off, as the market would likely re‑price the premium (historical beta of NCPL ≈1.4 suggests the stock reacts strongly to earnings surprises). A pragmatic approach is to monitor the upcoming Q2 earnings call for guidance on EBITDA margin expansion and watch the EV/EBITDA trend; a breach below the peer median (~12‑x) would be an actionable short‑term trade trigger.