All that noise - Illegitimi non carborundum FUNDAMENTALS
I will start with the noise on this board. Do your own due diligence. Illegitimi non carborundum...
SNC is three main assets; The good, the rich and the ugly.
The good is the professional services asset, with an EBIT of 672.7mil and an EBITDA of 785.7mil in 2021 (Reference 1):
Average engineering/construction multiples are 21.23 EBIT or 12.63 EBITDA (Reference 2) or 10 to 15B or 57-85$/share.
The rich is Capital valued at 2.5B which Includes the 407. It pays for the net debt, and liabilities and any potential losses.
Reference 1:
slide 30 (bottom): https://www.snclavalin.com/~/media/Files/S/SNC-Lavalin/investor-briefcase/en/2021/q4-2021-conference-call-presentation.pdf
We should be lower in 2022 because we had an unexpected claim resolved in 2021 but back around these figures in 2023 considering guidance of EBIT growth of 8-10%.
Reference 2:
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/vebitda.html