Tangelo Games Corp. IPRSF

RE:RE:RE:RE:RE:Consolidating sector

[lscfa]

Someone recently brought up debt/ebitda ratios so lets compare:

NYX 515/68 = 7.6x    
GEL 88/10 = 8.8x

lscfa wrote: p.s.s.....

Ebitda Margins 

 

NYX 

28.7% Q2

28.6% H1

 

GEL

26.8% Q2

26.9% H1

 

lscfa wrote: p.s. NYX has $515 mil of debt & pref shs. vs. the $260 mil equity .......

lscfa wrote: NYX is being acquired for about 11x ebitda so my previous calc of fair value stands.....

 

Assume transition to mobile increases yearly ebitda from $10 million to $15 million

 

using a multiple of 10x => $150 mil enterprise value

 

$150 mil + $4.5 mil cash - $88 mil debt = $66.5 mil equity value

 

$66.5 mil / 220 mil shares = $0.30 per SH.

 

 

Alternatively…..

 

Get rid of debt $88 mil / 0.10 = 880 mil shs + 220 mil =  1100 mil shs.

 

Ebitda of $15 mil becomes net income (~ $50 mil in tax loss carryforwards)

 

15 P/e => $225 mil value or $0.20 per sh

 

 

 

 

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180 mil shs o/s

40 mil wrts/options in money ($2.5 mil cash from proceeds)

220 mil total

 

$2 mil cash

$2.5 mil exercised wrts/ops

$4.5 total cash

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