RE:valuation vs peers Torontojay wrote: Here are some up to date enterprise values to ebitda ratios for The Trade Desk, Magnite, Pubmatic and Acuityads. Magnite includes the newly combined company with the acquisition of SpotX and its fourth quarter contributions. Ebitda would be full year 2020 results for the aforementioned companies.
Ev/ebitda
1) The Trade Desk 104.7
2) Magnite 132.89
3) Pubmatic 85.46
4) Acuityads 59.36
One must always have faith in the numbers over market irrational behaviours. Why I believe we will rise significantly from here is that we are cheaper than our peers and we've only scratched the surface on Illumin. Magnite already has fourth quarter contributions from SpotX which boosted their year end ebitda numbers. With Illumin, we will see further ebitda expansion which will make the enterprise value to ebitda come down significantly. This will make us even cheaper relative to our peers going forward.
If we were to trade in line with The Trade Desk we should be at $31.74
If we were to trade in line with Magnite we should be at
$40.29
If we were to trade in line with Pubmatic we should be at $25.91
Take an average of the 3 and we could be trading at
$ 32.64
I would love to see what it would be utilizing forward EBITDA instead of trailing (just assume quadruple the last reported quarter for each... it will probably be lower than what they will all actually run since it would not assume any annual growth...but would even things out since it would be reasonable to expect everyone to continue with the most recent numbers... In Acuity's case... its going to increase EBITDA by nearly a magnitude of four times.
Oh well... I'm just too lazy to do the math right now. Thanks for crunching the numbers!