Quarterhill Inc T.QTRH

Cannacord ‘s Updated Valuation Based on Q1 only..$8.75

[nozzpack]

So, we have Cannacord giving QTRH a 12 times Ebitda.

Q1 guidance alone, in mid range, is $80 million.
So, we have $80 m Times 12 divided by 115 m shares =$8.75 per share.

This assumes no valuation additions for Q2 to Q4.
That is obviously wrong.

Tentatively , at $120 million in 2022 Ebitda, fair value is above $12 per share..very conservative at that as whacks of cash will be added

Driven by the anticipation of strong results from its operating subsidiaries, Quarterhill estimates its consolidated revenue for Q1 2022 to be in the range of $165-million to $175-million and its consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to be in the range of $77-million to $82-million

[Capharnaum]

I don't think it's recurring revenue. I think a year end $4 share price is more realistic, supported by a net cash position of around $200MM (cash net of debt), or about $1.75 in cash per share, after the sale of Wilan + value of ITS business of around $250MM, or about $2.20 per share.

[nozzpack]

I am not referring to recurring revenue. Ex Wilan, Qtrh Will average about $200  million per year, including its recent acquisitions. Ebitda should be in the $30 m range  Traditionally, over the past 3 years, Qtrh has traded above 20 times Ebitda. So, this Ebitda based valuation values Qtrh at about $5 per share. Add about $1.75 per share in cash and probably paying a higher dividend