Boku reported strong results for FY20, with adjusted revenue and EBITDA growth of 20% and 106% respectively. The Payments business benefited from increased consumer demand during the pandemic, while the Identity business had a more difficult year. Trading year to date has been strong for both businesses and management is confident of meeting expectations for FY21. We have made minor changes to our FY21/22 forecasts. The evolution of the platform to address the wider alternative payments market provides upside potential to our forecasts and the share price.

Valuing the Payments business alone using the average FY21e EV/EBITDA multiple for its peer group results in a per share value of 197p, providing upside to the current share price. The Identity business could provide further upside - including it at its unimpaired cost would take the per share value up to 203p.  

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