Scotia estimate
Updating Value for Topicus. We have updated our valuation estimate for Topicus.com following solid TSS Q3/20 results and share capital assumptions, resulting in an estimated baseline trading range of ~$43.00 to $49.00 per share (previously $44.00 to $50.00 per share, based a slight decline in valuation of comparable firms since our Oct. 29/20 note). Our valuation is based on a range of 15.0x to 17.0x EV/EBITDA on F2022E reflecting a 1.5x premium to peers (unchanged). Our baseline analysis assumes that all preferred shares in Topicus.com and exchangeable units are converted to common shares by Q2/F2022 reflecting fully diluted shares.