Rain Valuation Soars to Ridiculous Heights: Telkom’s Market Cap Crumbles
African Rainbow Capital (ARC) Investments has just dropped a bombshell, valuing its wireless broadband operator, Rain, at a staggering R25-billion. That’s nearly double Telkom’s R14-billion market capitalization, which is nothing short of a joke.
But what’s even more astonishing is that ARC’s stake in Rain has increased to 21%, with the company’s shares acquired from another shareholder. The introduction of rainOne and the 101 5G router has been the catalyst for this growth, according to ARC. Oh, and by the way, Rain’s Ebitda (earnings before interest, tax, depreciation, and amortization) has skyrocketed to R2.5-billion, resulting in a fair value gain of R598-million.
But let’s get real, folks. Rain’s valuation is nothing but a house of cards, built on shaky ground and propped up by some fancy accounting tricks. I mean, who needs Ebitda when you’ve got a CEO who can spin a good yarn and make investors believe in a fairy tale?
And what about the competition? Telkom, the once-mighty giant of telecommunications, is now a laughingstock, with a market capitalization that’s being left in the dust by Rain’s meteoric rise. It’s like they’re competing in a different league altogether.
But don’t just take my word for it. Check out Rain’s standalone mobile product, launched at a ridiculous R165/month. Who needs affordable internet when you can have a fancy mobile plan that’s out of reach for the average consumer?
So, there you have it. Rain’s valuation is a joke, and Telkom’s market capitalization is a joke. But hey, who needs reality when you can have a good story?
