Materially undervalued at current prices: Here's why, page-35

If you review this whole thread, it is all spelled out

Particularly in my opening post...

Short version.... I strongly believe that TLS is about to offer circa 2.5 times the store network EBITDA... Which is somewhere between 65 and 85M a year, depending on which year you use as the reference, and what your thinking is around head office costs.

This multiple is roughly market value..
This multiple is roughly what VTG has paid recently for stores..
This multiple is roughly what TLS has paid recently for stores..

An offer of 1.5 times EBITDA would never fly... VTG would just keep them for the next 4 years.

Reflecting on the (unlikely) no deal scenario, the NPV of the stores EBITDA for the next 4 years (ceteris paribus), even applying a stiff discount rate, is well over $200M also....

So it just doesn't matter which way I slice or dice this baby, I keep coming up with the same answer....