Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by markvrdon May 08, 2012 12:27pm
313 Views
Post# 19885096

RE: SELL,SELL,SELL,SELL,SELL,SELL

RE: SELL,SELL,SELL,SELL,SELL,SELL

Fair market value = 2.5 x EBITDA annually, however, not sure where you get $200 million for annualized EBITDA.    The quarterly EBITDA this quarter alone is $146 million.   

You can look at four cases, on opposite ends of the spectrum to understand fair value assessment using the 2.5 EBITDA multiplier...

Best case: If EBITDA stayed the same all year (unlikely) then 2.5*4*146 = 1.46 B fair value.

If EBITDA declines linearly by 25% over the year, then you`re looking at a mean quartery EBITDA of 128Million.   In this case, Fair value = 2.5 x 4 x 128 = 1.28 B.

If EBITDA declines linearly by 50% over the year, then mean quartery EBITDA is 109.5 Million and fair value is at 1.1 Billion or so.

Worst reasonable case: Finally, if print revenue drops to zero and online does not change, then with a linear 70% EBITDA drop (since online equals 30% right now and margin is similar to print), mean quarterly EBITDA would be 95.5 million and fair value would be 955 million.

Bullboard Posts