RE:RE:SXP worth over $5 per share, 100% more than current SP?reply to TorontoJay:
Or adjust the annual cashflow by the amount of lease payments made.
I agree, but there is only so much one can write and adjust for, if hoping to get the basic message across. There are other possible adjustments too.
Practically speaking, my view is the multiple used should be higher if lease liablities or lease finance payments are adjusted for.
Lease liabilites on BS as at 9 30 2021 were 17.546m and that is just .65x the annualized Q3 cash flow. I think that means a multiple adjustment of just .65 (less than 1) would be sufficient to allow you to ignore lease liablities.
Alternatively, the value of the lease liabilities may be offset by what appears to be excess working capital - wc was about 26.4m at 9 30 2021, or about $1 per share.
Even futher, the 9 30 2021 BS shows $13m of pension benefit assets which I also simply ignored in order to present story as simply as possible.
Just in case, my posts are not "pump and dump". There is undiscovered value is SXP, that is worth waiting for. Happy to hear if you agree or not.