Post by
mnztr on Nov 04, 2024 8:55pm
So lets consider some numbers for the acquistion....
They paid 14x earnings for the company so that means earnings are 500m a year, they feel they can more then 2x the customer base the feel that can increase the base to 2 x by 2028 so that will leave them with (best case) about 900m/year in earnings. So 7.3x is not a bad price to pay esp when there is subsstantial growth beyond the 3m and they do have experience in growing it out in Canada .Also much less fiber penetration in the USA. v Canada. With interest rates falling BCE may still do very well. With its significant debts the falling rates may befit them greatly.
Comment by
ckwong on Nov 05, 2024 5:52am
BCE has been trying to penetrate the US market. They did some projects in the States but the revenue is not significant. Hope this Ziply deal creates a firm setting and let BCE expands to US while the Canada market has less opportunities..