BCE’s Acquisition - Implications for Cable One BCE’s recent acquisition of Ziply Fiber for approximately USD 3.65 billion. This transaction values Ziply Fiber at an enterprise value of approximately 14.3 times its estimated adjusted EBITDA for 2025.
With Donald’s new leadership in house, the market anticipates an increase in mergers and acquisitions. Using BCE’s acquisition multiple as a benchmark for Cable One (CABO), I observe the following:
- Current Enterprise Value to EBITDA: CABO’s current multiple is 6.7x compared to Ziply Fiber’s 14.3x.
If we apply a 14.3x multiple to CABO, the share price would be roughly $890
- Market Value Comparison: CABO’s current market value is $2.34 billion, whereas Ziply Fiber was sold for $3.65 billion, despite having half of CABO’s revenue.
Assuming a similar sale value of $3.65 billion for CABO, the share price would be around $650
Based on these comparisons, I estimate CABO’s baseline price targets to be between $650 and $890, assuming a favorable political landscape that supports small and mid-cap stocks. Todays current price is $417.