RE:ebitdajabez3 wrote: This is maybe not an apt comparison, but it's a way I can look at something.
I'm in the carwash business. Currently, washes are selling for 8-10 times ebitda, sometimes more believe it or not.
Well should soon have 100 million in ebitda. Ten times that is a billion. a billion divided by the shares outstanding is a little less than 5 if i have my math right.
So, about $5 a share is the value (in my world) without future potential. The future potential is obvious.
If you can afford to, sit tight. I don't know how long it will take but we should certainly be close to bottom, even though it's not a carwash!
I am all in and have never sold a share. I'll wait even though it's frustrating as hell!
good analysis here jabez3
what you're missing is the Net Debt though as public companies are typically valued using EV/EBITDA multiples
EV = Market Cap + Net Debt
= (222MM Shares X $6.30 CAD) + $311MM
= $1.7Bn
EV/EBITDA = ~17X
The peer group average is 30X as per a recent TD Securities report, post Q3.
WELL also trades at ~3.5X Revenues, when the peer group is 6.5-7X.