RE:RE:RE:RE:Outstanding Q4 and 2018Hmm... Since we are not valuing the business from a liquidation perspective, I don’t think you should include it because it’s not useable cash and is part of the working capital requirements for the EBITDA business. It’s like the real estate. If you don’t have it, then you can’t really operate and generate cash flow. Maybe they could use a LOC and extract that cash. I don’t know the regulations. Maybe the acquiring company may have restricted cash economies of scale and not need additional restricted cash. Or maybe they do some working capital adjustment as standard in the M&A of casinos.
if we were talking liquidation value for a margin of safety, you would shut down the casinos, value the real estate with no casino in it and add up all the cash including restricted. But that may be double counting in this case.... But who knows it’s only a 0.025 difference I guess...The real question is what will be the cash flow valuation multiple. Hotel/gaming EV/EBITDA average is 10.6x (source NYE Stern). So there is some room to move up, but not much from 8.9X