stock valuation of bbi , page-4

obviously you guys have done a lot of research and understand what your talking about..NOT

Below is a recent extract from an article, if this journo can get some facts right then surely you guys can...BBI is not going anywhere!!

...The company recently sold half of just the New Zealand assets of Powerco for $1 billion, a price the equivalent of 25 times free cash flow.

Now if you valued the whole of BBI's portfolio on that basis, its equity would be worth maybe $5billion. And the thing is, there is no particular reason not to use that sort of metric as most of BBI's assets are monopolies with EBITDA-to-interest cover ranging between 2.3 and 2.5 times.

Those ratios would have to halve for BBI to be in breach of covenants, and that is an unlikely outcome given the individual price regulators would have to breach agreements to effect lower pricing.