TSXV:VER.H - Post by User
Comment by
juanonaon Nov 08, 2007 12:23pm
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Post# 13776821
RE: I still stick with my earlier calculation
RE: I still stick with my earlier calculationfdfd, with all due respect you might want to revisit your assumptions: to go from EBITDA to net earnings you have to take into account not only taxes, but also depreciation & amortization. As Paradign pointed out in their Aug report, these latter are likely to be substantial (due to all the M&A activity) but not really relevant to a fair value. They instead use EBITDA and a multiple of 12. Alternately, one could use Rob McWhirter's estimate of .84 net earnings which DO allow for Depreciation & Amortization.
In the end I tend to agree with your fair share price based on FY08 estimates to be in the high teens, but I get there a little differently.
On a related note, does anyone know how many shares outstanding we will have when the dust settles? With the extra 100M financing, along with the over-allotments, I suspect we are a bit over 100M.
Good luck to all,
Max