Bullboard - Stock Discussion Forum Data Communications Management Corp T.DCM

Alternate Symbol(s): DCMDF

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DATA Communications Management Corp. is a Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. The Company is engaged in delivering individualized services to its clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management... see more

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Data Communications Management Corp > Illustrative EV to Ebitda Valuation exit 2021

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Post by nozzpack on Mar 11, 2021 12:10pm

Illustrative EV to Ebitda Valuation exit 2021

I assume the following..

LT debt will be paid down to $40 million

Ebitda is $30 million

EV to Ebitda Multiple = 14.1 ( https://siblisresearch.com/data/ev-ebitda-multiple/ )

FYI Enterprise value = Market cap + debt minus cash

Current EV = $90 m

Projected EV at Exit 2021 = 14.1. X $32 m = $420 million

Projected Market Cap = $420 m less $40 m debt = $380 million

Fair value Share price = $8.50

Divide by 2 to be conservative = $ 4+ per share.

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Comment by knicksman on Mar 11, 2021 2:11pm

Once the equity overhang clears (looks like it cleaning up at these levels) I think the shares will do very well. Would be nice to see CEO buy a large chunk. No better motivator than skin in the game.

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Data Communications Management Corp