Has anyone considered? Has anyone considered that maybe $2.60 is a fair offer?
Look at the Q3 report, where the 9-month ebitda was $12,1 million, or $16 million on an annualised basis.
At an 8% cap rate, that supports a valuation of only $200 million.
Now, subtract the debt of $270 million ................
I realise that the projects were running below design capacity because of low wind, and I estimate that it may have been as much as 50% low. I have to estimate, as we are never told anything specific.
So, lets double the annual ebitda to $32 million, and add in $12 million for Yabucoa, for a total of $42 million.
At a cap rate of 8%, we get a value of $525 million, much better.
Now subtract the Q3 debt of $270 million, or if we add in the recent additional $25 million loan, $295 million, and subtract the expected net debt for Yabucoa of $80 million (after grants and tax credits).
The net result is a value of $150 million, or about $2.25/share.
Of course we would have to add in some nominal amount for WND's other projects that are invarious stages of development.
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Now, if anyone can show where I have made glaring errors, by all means point them out.
But don't just parrot the DAI report, as we don't know the exact terms of their valuation model. So, for me at least, it has no value.