Does this math work? RBC, I am wondering... Our $50 price target supports our Top Pick rating. We value Norbord on a blended 7.25x EV/
EBITDA multiple of our trend EBITDA estimate of $500 million (85%) and our 2017E EBITDA of
$620 million (15%). We believe the shares should trade at a multiple above the high-end of
the typical Canadian paper & forest products trading range (5.0x to 7.0x), reflecting positive
near term supply-demand fundamentals and operating momentum.
This adds up to $43 to me. What gives? The EV is close to 4 billion as it stands.