Data Communications Management Corp T.DCM

Alternate Symbol(s): DCMDF

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DATA Communications Management Corp. is a Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. The Company is engaged in delivering individualized services to its clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage and digital asset management. The Company’s solutions include DCM Digital, Print & Communications Management, Marketing and Technology & Innovation. Its DCM Digital solutions include customer communications management, digital asset management, personalized video, location-specific marketing, multichannel marketing workflow management, and digital signage. It serves brands in various vertical markets, including financial services, retail, emerging markets, healthcare and wellness, not-for-profit, energy, hospitality, lottery, government, and others.

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Data Communications Management Corp

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Post by nozzpackon May 12, 2021 6:38am

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Post# 33180812

Emerging Proxy Based Valuation

Now that debt has been paid down to $40 million, with $20 million or less at exit 2021. these are my fair value at peer EV to Ebitda..

I assume the following..

LT debt will be paid down to $ 20million

Ebitda is $ 40 million

EV to Ebitda Multiple = 14.1 ( https://siblisresearch.com/data/ev-ebitda-multiple/ )

FYI Enterprise value = Market cap + debt minus cash

Current EV = $ $60 m

Projected EV at Exit 2021 = 14.1. X $32 m = $ 560 million

Projected Market Cap = $ 560 m less $20 m debt = $540 million

Fair value Share price = $12 per share

Divide by 2 to be conservative = $ 6 per share.

Actually, I don't see the need to be conservative because......

....another $8.5 million in operating cost compression gains is forecast for 2021.

.....incipient growth in revenues is now entering valation indices

.....additional potential cash inflows could be squeezed out of the $20 million excess of Receuvables over Payables

......growth by entry into new markets

....recurring revenues is 70% of total revenues

So, realistically , I see upwards to $12 per share at exit 2021