MERUS LABS INTERNATIONAL INC T.MSL

ebitda emphasis is sort changing the co.

[lscfa]

ebitda does not give co. credit for low interest rate and low tax rate so market is mis-valuing the stock.


Current adj ebitda $10.85 mil
Annualized = $43.4 mil
EV/ ebitda multiple of 6 => $260.4 mil
Less net debt of $136.5 mil => equity of $124 mil
117 mil shs. => $1.06
 
Current adj. eps = $0.062
Annualized = $0.248
p/e multiple of 8 => $1.98

net loss		-6,317,410
fx losses (gains)		3,748,357
amort of intangibles		8,941,592
legal settlement		998,176
acquisition costs		0
derivative losses (gains)		-77,410
adj net income		7,293,305
shs avg o/s		116,999,906
adj eps		$0.062

[lscfa]

Let's hope mgmt is not dumb enough to let a buyer price a takeover on EBITDA multiples.....

[peter75]

Good work I came up with 1.85 without factoring tax carry Feds that are worth money

[lscfa]

The example used trailing no.s for comparision purposes only....we know that Q4 ebitda is to be 25% higher than Q1 editda, so 1.25 x $10.85 = $13.56 for a $54.25 million annualized run rate EV / ebitda multiple of 7 => $380 mil EV less debt of $136.5 => $243.25 mkt cap 117 mil shs. => $2.08

[Kensin1953]

$2.08 exactly    I had to laugh when I saw this    T.IRD   i guess I don't get out much