What is the fair value of Atlas Engineered Products?
The market says Atlas’ market capitalization is ±$39,000,000 (2022-11-25).
The recent purchase of Hi-Tec by Atlas offers a good guideline on what the potential value of Atlas could be or should be.
Atlas paid $9,050,000 for Hi-Tec. At that time, revenue was $5,000,000 and Editba was $1,250,000. The revenue multiplier is 1.81 and the Editba multiplier is 7.24.
Atlas is on a revenue run rate of $70,500,000. Applying a multiplier of 1.81 would result in a market cap of $127,700,000 or $2.07 per share.
For the current fiscal year, Atlas will likely achieve $15,400,000 in Editba. Applying a multiplier of 7.24 would result in a market cap of $111,600,000 or $1.81.
There are a lot of small cap stocks that are cheap right now, Atlas is one of them.