OTCPK:JENGQ - Post by User
Post by
aazzcuxon Jun 11, 2019 1:07am
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Post# 29814184
$6.55 to $7.50 is discussed, Canaccord, June 6
$6.55 to $7.50 is discussed, Canaccord, June 6Potential takeout price of $7.50/sh: We estimate Vistra is paying $546 per customer for Crius while NRG is paying $675 per customer for Stream Energy's retail portfolio. Using this math on JE's 4.1M-strong customer base (and assigning a lower price for JE's UK customer base) results in an intrinsic takeout price of between $9.00/sh and $12.00/sh. Using an EV/EBITDA multiple approach, we estimate an intrinsic takeout price of $6.55/ sh (discussed in our prior note). This assumes JE's post acquisition EBITDA (including synergies) of $306M (versus LTM EBITDA of $190M) and a 6.0x multiple. If we assign a 25% weighting to a $/customer valuation approach and 75% to an EV/ EBITDA multiple approach, we get a takeout value of $7.50/sh.