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Quarterhill Inc T.QTRH

Alternate Symbol(s):  QTRHF | T.QTRH.DB

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.


TSX:QTRH - Post by User

Post by shareholders1on Oct 13, 2021 1:31pm
348 Views
Post# 34001846

Rough calculation of stock market's excess discount...55c

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
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