RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:SP upon start of trading
snowtigerrr wrote: STC now has an enterprise value of $530M with $36M EBITDA and 222M shares outstanding post acquisition. STC currently trades 20x EBITDA (expensive) so a move back to $3 is coming. If markets correct I can see this falling to the 200dma around $2.50.
Pro forma Ebitda numbers will be around $44 million Cad. On July1st 2025 they will have 221,487,735 shares. When the deal closes, they will have 133,487,735 and the company expects to have $101 million in debt. I estimate their cash balance will be around $15 million at closing.If the price remains the same at $3.87, they will be trading at an enterprise value to pro forma ebitda of =~ 11.74
Their debt should also be extinguished by July1st 2025.
If ebitda grows 10% per annum over the next 4 years or by July 1st 2025, then it will be around $ 64.4 million. If the share price is $5 by July1st 2025, then we have an enterprise value to ebitda =~ 17
I would say this is pretty reasonable
if ebitda grows by more than 10% per annum, then watch out!