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Invesco Global Listed Private Equity ETF V.PSP


Primary Symbol: PSP

The investment seeks to track the investment results (before fees and expenses) of the Red Rocks Global Listed Private Equity Index. The fund generally will invest at least 90% of its total assets in securities (including American depositary receipts (ADRs) and global depositary receipts (GDRs)) that comprise the underlying index. The underlying index is composed of securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies (BDCs), master limited partnerships (MLPs) and other vehicles.


ARCA:PSP - Post by User

Comment by VPofFNEon Jul 06, 2016 12:44pm
94 Views
Post# 25027880

RE:RE:RE:Manipulation

RE:RE:RE:ManipulationIt depends on what metrics you're using to value the company. If PSP can maintain a revenue clip of above $20,000,000 per year (which they should be on track for now), and refrain from building large overhead like they did 8 - 10 years ago, then it should be able to produce $1.5 - $2.5mm per year in EBITDA. On a simple calculation of 8x, it should have a market cap of $16 - $20mm, bringing us to 18 - 30 cents in simple valuation. 

If a strategic buyer from the outside was potentially looking to acquire PSP, they would probably give them a better premium as they would want the market share and could eliminate overhead. 

Essentially, this puts us on the low side of being fairly valued, but we're inside a range. I personally only see upside from here. 

VeeP

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