RE:RE:RE:RE:RE:RE:SHAW selling Corus Don't really know how you're getting to this valuation.
Off Morningstar Financials (in million of CAD$)
2017 EBITDA = 1066
2017 Non-Current Asset Value (arguably what is used to generate EBITDA) = 5542
Book Value/ EBITDA = ~5x
Now let's see if this non-current asset valuation is reasonable.... let's look at ENB for 2017
EBITDA = 6174
Non-Current Asset Value = 152878
Book value / EBITDA = 24x
I don't really much care about market cap since that is based on SP which is not always a reflection of the value of the co. but based on the above, I would argue non-current assets (including intangibles) is not undervalued given a quick comparative analysis. They are able to generate significant EBITDA with these intangibles.
I think the current market cap is more of a reflection of the sector (people panicking about Netflix) and the high dividend rather than actual fundamentals.
Their debt to equity is sub 2 at approx 1.5. Since we've established their intangibles are valued reasonably, that total Debt/ total Equity does not need to be adjusted. Even if you completely take out their A/R you get a D/E of 1.8....1.8 leverage does not seem unreasonable.
Debt to EBITDA = is ~3.1
EBITDA/ interest expense is 9x
I'm just not seeing your rationalle for a valuation of 0. I think you're really undercutting their intangibles.....maybe you should ivnest in a manufacturing company? Might be more your style.