Celtic plc (LSE: CCP) went public in September 1995 at £0.60 per share with 29 million ordinary shares outstanding and a market cap of £17.4 million.
CCP generated revenue in 1995 of £10.376 million. CCP was initially valued at 1.68X revenue.
CCP gained by 686.67% within the first 16 months of its public listing to hit an all-time high in January 1997 of £4.72 per share. At its all-time high, CCP had a market cap of £136.88 million with revenue of £16.055 million and was valued at 8.53X revenue.
CCP used its 1995 IPO proceeds to expand the capacity of Celtic Park. Construction was completed on July 21, 1998. CCP on July 21, 1998, was trading for £1.93 per share with a market cap of £55.97 million. CCP had net debt of £2.169 million for an enterprise value of £58.139 million. CCP generated revenue in 1998 of £27.891 million. CCP on July 21, 1998, was being valued at an enterprise value of 2.08X revenue.
At the end of fiscal year 2000 on June 30, 2000, CCP was trading for £2.14 per share with a market cap of £62.06 million. CCP had net debt of £14.505 million for an enterprise value of £76.565 million. CCP generated revenue in 2000 of £38.597 million. CCP on June 30, 2000, was being valued at an enterprise value of 1.98X revenue.
CCP last had a share offering in 2006, when they raised funds to help repay debt and construct their Lennoxtown Training Centre. There was a controversy because they only paid £493,000 for the 19.45 hectares of land in Lennoxtown that was reportedly worth over £30 million as of 2013. No evidence of corruption was found. We are sure their land in Lennoxtown is already worth significantly more than it was in 2013.
CCP as of December 31, 2023, has record high trailing twelve-month revenue of £128.53 million with net cash of £67.327 million. CCP as of today has ordinary shares outstanding of 94,768,565.
Many sports franchises that were previously worth between 2-3X revenue in 1995-2000 are today worth over 10X revenue.
Even if we value CCP with an enterprise value of only 2X its trailing twelve-month revenue of £128.53 million it would have an enterprise value of £257.06 million plus net cash of £67.327 million would equal a market cap of £324.387 million. Divided by current ordinary shares outstanding of 94,768,565 values CCP at £3.42 per share or $4.35 per share for CLTFF using the most conservative numbers possible.
Obviously, CCP is worth much more than 2X revenue. CCP is one of the only football clubs in the world that consistently makes a profit!
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