RE:Simply Wall Street says CXR SP is worth $10This is what I believe, and basically for the same reason, but CXR needs a successful financial restructuring deal to make it happen.
It will all depend on the percentage of the company that the current common shareholders retain, post restructuring. If it is 15% or more, the share price could see $10 fairly quickly.
My math goes something like this. Value of the company: $3,500,000,000 = 10 x $350,000,000 cash flow. The 10 multiple is less than industry average. For common shareholders to retain 15%, need to issue 290,586,667 new shares, for a total of 341,866,667. $3,500,000,000 / 341,866,667 = $10.24. It might take a little while post-restructuring for the value to be realized in the form of market cap.
For me to be happy, I don't require the deal to be anywhere near that good, but I understand what they are saying.