Data Communications Management Corp T.DCM

EV to Ebitda Valuation of DCM

[nozzpack]

EV = market cap + debt -cash = $101 million for DCM

EV to Ebitda multiple for this sector is 14 times

Ebitda at least $30 million in 2020

Based in $30 m Ebitda, DCM ratio is about 3.3 compared to peer value of 14 times which means that DCM is very undervalued ..

[nozzpack]

My sincere apologies. my previous post on EV to Ebitda multiples should have had the following link attached to it.. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/vebitda.html

[knicksman]

I agree with a lot of what you're saying. I think they can do $40m -- by shrinking to greatness. Cost cuts, business mix improvements, etc. Adjusting for leases, we could get closer to $30m of EBITDA. As for the debt -- I think DCM can generate about $12.5m of FCF in 2021. I can also see them converting about $10m of receivables to cash with the BAR program. That will get them close to $45m

[nozzpack]

Thank you. I had forgotten to mention the $30 million or so excess of receivables over payables some of which may be accelerated to cash in 2021..