CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

CUS vs. sector

[Nawaralsaadi]

Below is a link to a table from TD (issued March 7th). It is an informative piece comparing CUS valuation to the sector at $6 and arguing for a $7 price target at 9 times 2015 EBITDA against 7 2015 EBITDA for the chemical sector and 9.7 2015 EBITDA for the infrastructure sector. I find TD's estimates of $127m for the chemical sector in 2015 and $63m for NATO reasonable and their target EBITDA is a proper hybrid between infrastructure stocks valuations and chemical companies’ valuations:    

https://postimg.org/image/ez08vc3xz/
 
Depending on each investor’s outlook, EBITDA estimates and the EBITDA multiple to use may vary, but it is safe to say that the proper wide range value for CUS is $6 on the low end to $8 on the high end. As the market confidence increases in the improved execution and cash flow contribution at/from NATO, the share price will gradually move into that wide $6 to $8 range.

Regards,
Nawar