Other Considerations of Fair ValueThe Ebitda multiple is another way to value DR.
I provide data for the last 3 years along with net debt ( cash less LT debt )
Year Ebitda EV EV/Ebitda net debt
2017 $94.6 m $551 m 5.8 $9 m
2018 $99.0 m $518 m 5.2 $25 m
2019 $96.2 m $419 m 4.4 $35 m
2020( H1 x 2 ) $86.2m $125 m 1.5 $-11 m
DR has the best balance sheet in its recent history and with the sale of low margin assets, has very robust operating margins.
The average EV to Ebitda for recent years is 4.8.
DR is currently trading at just 1.5 times, which suggests a 3 fold increase from current levels by exit 2020................ approx $13 per share