RE:RE:Re: Seeking Alpha Article on CRHI actually flagged this error for Greystone...not sure why he didn't change it when he submitted it to Seeking Alpha. The comments are correct, you can't apply an EV/EBITDA multiple to EBITDA, then add net debt to your EV calculation, you need to SUBTRACT it from your EV to get to equity value.
What's annoying though is that you didn't need that part of the valuation in the first place. He's getting to similar FCF/share metrics as my analysis. Just look at where the comps trade on a P/FCF basis, and/or where healthcare services trades on P/FCF across the cycle, and you get to a range of 16-20x. Then apply that to the ~$0.40 of FCF/share (he actually thinks it takes longer...2020 vs. I think they get there on a pro forma basis in 2018 and on an actual basis in 2019), and you get to a $6.40-$8.00 target (all in USD here).
When you parse through the two changes (the net debt addition error and my belief that he used a way too low multiple), you actually get to a much higher valuation for the stock, as we've discussed on this Board. But yes, his calculation is incorrect, and you have to make these adjustments.