RE:EV/EBITDA multipleI think DCM should be valued at a EV/EBITDA multiple of between 4.0x EV/EBITDA and 5.5x EV/EBITDA.
I would think that in its current state, facing continued secular headwinds with limited earnings visibility, it would be fair to value DCM at 4.0x EV/EBITDA.
I would think that as DCM grows through M&A (capitalizing on cost and revenue synergies) and demonstrates a more predicatable earnings profile (which I think will be the situation in a year), that DCM would get valued at 5.5x EV/EBITDA.
The issue with your numbers is that they are backward looking, therefore largely useless. They do not account for the cost savings and the announced M&A.
I would think of this business as a $22 million EBITDA business with $50 million debt at the end of 2017. And I think there is upside to EBITDA. I would also use 13 million shares outstanding. That's how I get to a $4/share value. I think that could reach $6/share in a year and a half.