Glacier Media Inc T.GVC

Direct Proxy Valuation..PNC.A to GVC

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PNC.A is post Media, very similar to GVC in its Print industry except that GVC has several other divsions outside of Print  that are rapidly growing.

The comparison in the Table below is conservative in that PNC.a is exclusively print.

Nevertheless, using PNC.A as Fair value, GVC would be valued at $1.90 at PNC EV to Ebitda multiple.

To this, you can add about $1 per share for the $120 m of negative book for PNC.A.

That is a Fair value adjusted for PNC.A negative book ( $120 m  Fair value of GVC t would be close to $3 per share

PNC.A has a substantial negative Book value, so that comparison with P/Book cannot be made.

However, using the Industry niche for P/Book for GVC., its fair value would be over $4 per share

Trailing Price to Book for Media, Broadcasting advert

 

https://csimarket.com/Industry/industry_valuation_ttm.php?pb&ind=902

	Post Media		Glacier Media
Shares o/s	98,800,000		132,500,000
Market cap	$201m		$61 m
Debt	$238 m		$0.0 m
Cash	$52 m		$15.9 m
lease debt	$40 m		$2.9 m
Revene	$425 m
Gross Margin	28%		35%
Book Value	- $120 m		$183 m
Enterprise  value	$427 m		$48 m
Ebitda	$33.2 m		$15.6m
EV / Ebitda	12.8		3.1
Price to book Multiple			2.97
Fair value vs PNC			$1.90 /share
Fair Value P/Book	$0.0 /share		$4.10 /share

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With its massive debt and lower gross margins, the fact that Postmedia has a market cap three times that of GVC  is unbelievable . In fact, there is no reasonable explanation for this massive difference in valuation.   It's difficult to see how PostMedia can survive its massive debt, while GVC has diversified its revenue streams into 4 other  niches which are growing