RE:RE:Great Value That's not really an accurate way to calculate the change in value. If you are using an old valuation and making adjustments then you should use enterprise value (debt plus market cap). Enterprise value would have been 5.3B in spring, so the 20% revision in EBITDA would have a 1.06B impact to enterprise value. That puts enterprise value at 4.24B, deduct the 3.3B debt and you're left with less than 1B market cap. I don't know how much, if any, to deduct for the inventory writedown. The default risk is also higher now, so that will also affect the market cap.
It's honestly best just to apply an EBITDA multiple to North America and one for AMCO and value it that way. Weak growth outlook and other issues will make it difficult to determine the appropriate multiple.
puma1 wrote:
I get to a close number but a little differently. all US$ 1) the market cap was $2 billion in the spring of 2016 based on the value attached by Blackstone . 2) reduce this by $500 million for the writedown and we are at $1.5 billion. 3) reduce again by 20% for the UK currency wind downs. this gives a market cap of some $1.2 billion or about $US 23 a share. we have hedge funds with more than 25% of this stock and it is trading at a 60% discount to this value - there is a Billion dollars to be made by a hostile takeover