Post by
nozzpack on Aug 15, 2021 7:44am
Trailing EV / Ebitda Valuation
The current EV to Ebitda multiple is 14.78 for this sector
(https://siblisresearch.com/data/ev-ebitda-multiple/ )
TTM is $23.4 m and the current EV = $49 million
So,fair value on 12 month trailing Ebitda is ........
14.78 X $23.4 m + $14.5 m in cash = $415 + $14,5 m = $430 million
Market cap divided by 132 m shares = $3.25 per share..
Lower limit is Book Value ( ie Net asset value ) which is $1.38 per share..
That GVC is growing its business should include a PEG booster, but that is not necessary.
This investment is like shooting dead fish in a barrel.
Madison has been associated with GVC since 1976 and has recently bought a massive number of shares along with other insiders.
They may be ready to sell and monetize their investments here...
Comment by
nozzpack on Aug 15, 2021 6:21pm
FYI, I also researched price per book multiple for this media advert sector . Currently, the multiple is 4.13 times book.....https://csimarket.com/Industry/industry_valuation_ttm.php?pb&ind=902 This would value GVC above $5 which I think is much too high. However, anyway you look at GVC, it's fair value is above $2 per share and rapidly increasing ..