RE:RE:RE:RE:CheapnessFar more likely is they ultimately sell the company at a big premium to the current share price. If they continue to demonstrate apparently reliable solid cash flows private equity will come calling if they haven't already.
Supremex is currently producing $1.20 plus per share in EBITDA. So it's selling for less than 2x EBITDA. Plus they're buying back shares.
If they continue to execute well then I can't see why they shouldn't ultimately be able to go at 4x EBITDA--even with the envelope drag. That would not be a big price in the private equity world. That would work out to around $5 per share.
Not a razzle-dazzle business but 4x EBITDA is hardly a razzle-dazzle multiple.