If you go by the UBS Research SOP Valuation (remembering UBS is allegedly acting for KKR):
Using WOW metrics
If we apply the corresponding WOW EBIT margins to CML’s F&L, Fuel and Convenience, Kmart and Corporate divisions and value them at the same EBIT multiples at which we value the WOW divisions, we derive a SOP valuation of $16.00 per share. This is a 55% premium to our current SOP valuation.
If we take this valuation and apply a 25% premium to both Target and Officeworks, we derive a valuation of $16.77. We view this type of valuation as a potential exit valuation for any private equity acquirer of CML.
CML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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