Yellow Pages Ltd T.Y

Yellow seems to be hugely under valued

[Coolblueskidog]

They wipe out their debt and have about $70 million in cash. Market cap is $399 less $70 for a net of $329. The company is very profitable with $60 million a year net income after tax. Normally you take after tax income and multiply by 10 to determine the value of a company in the private sector. $60 times 10 = $600 million. Not $329. Am i missing something?

Thank you

[AcklynD]

Two comments. One is they will have around $80 million at the end of Q2, this is after they pay the debentures. Two is they generated about $123 million in EBITDA over the past 4 quarters.  Unfortunately this is declining along with their revenues, but the "am I missing something" part is the market's projection of the decline.  Right now the market is saying, roughly

[Coolblueskidog]

Thank you for your feedback. Taking a look at https://ca.finance.yahoo.com/quote/Y.TO/analysis?p=Y.TO it seems like the expectation of decline is ahead of reality as well as the assumption that management cannot generate new revenue streams. I am pretty happy with the new dividend increase as well as the projected profits. Still seems market cap is low compared to performance with $60 million

[nozzpack]

Removing debt de risks the investment here, as Y will be a cash cow for many years yet during which they will transition entirely into digital. The sheeple assume that the past predicts  the future. That is, management and insiders will do nothing but watch the slow melt . No debt, rising cash and solid equity presents a formidable combination that can quickly acquire non organic growth