illumin Holdings Inc T.ILLM

RE:valuation vs peers

[Torontojay]

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


 

Our valuation gap just got better. We were much cheaper on March 4th and that gap just got wider which means we are relatively cheaper than we were on March 4th.