RE:Quipt:Business Economics Attractive On Lower Capital Density 10% annual organic growth = 20% annual growth in share value due to leverage of debt financing.
assumptions:
10% organic growth in ebitda
20%/yr repayments of $73 million credit facility
no expansion to ev/ebitda multiple
| Now | 1 yr later | 2 yrs later |
Shs o/s | 36,563 | 36,563 | 36,563 |
Sh price US | $6.93 | $8.27 | $9.70 |
Mkt cap | 253,382 | 302,352 | 354,760 |
Net debt | 90,327 | 75,727 | 61,127 |
Ent. Value | 343,709 | 378,079 | 415,887 |
Ebitda | 49,000 | 53,900 | 59,290 |
EV/ebitda | 7.01 | 7.01 | 7.01 |