Rough calculation of stock market's excess discount...55c...Starting point is what was paid for recent acquisition, with a small bump to 175m for synergies. Other assumptions include IRD is also worth 175m, and that Wilan worth 6 x 30m Ebitda or 180m and no further adjustment re Apple case.
My rough calculations indicate the stock market may be under-valuing QTRH by about 55c per share.
Any one caring to read through should check for any errors and any faulty assumptions.
Recent acquisition cost 150, but say 175
Say IRD value is the same 175
Guesstimate of current excess cash 75
Less Debt (75)
Total value pre Wilan 350
Less 25% market discount to value ( 87)
Net stock market value pre Wilan 263
Per share (using just 116m shares) $2.27/ share
Current share price $2.85/ share
Implied stock market value of Wilan 58c/ share or 69.6m
Stock market’s possible excessive discount of Wilan/ QTRH
Stock market implied total value of Wilan 69.6
Guesstimate of Wilan Value (6X30 Ebitda) 180
Excess Discount 110.4
25% appropriate discount on 180 47
Excessive discount by market 63.4
Excessive Discount Per share 54.6c