Enterprise Value
- So, we are now at .80 with EDV and $4.18 with SMF.
- Enterprise Value for SMF is >1.2 Billion and for EDV it is approx $500 million (market cap + net debt o/s)
- On what basis, the market is basing SMF's EV at more than 2 times of EDV when the fact is that ,based on fundamentals, EDV should be valued higher than SMF on an EV to EV basis.
- IMHO, that EDV should have a market cap of > 1 billion which equates to a share price of approx $2.50 today. Had it not been for that "forced selling" last year due to the index exclusions, EDV would have been at the $2.50 - $3.00 range today.
- For a comparison, look at SMF's share price since January 2013. It is now much higher than that. One important reason being that SMF did not go through that "forced selling" like EDV did.
- Let's see if the markets factor that soon, and price EDV at what is its fair value, which in my opinion, is around $3.00 per share minimum... today !!