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13.0¢ tesserent limited

I’d love to know in what world a 20x multiple is conservative...

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brentman

120 Posts.

38

26/08/20

09:24

Post #: 46820358
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Originally posted by Hamish001: ↑

Back of an envelope shows 6.1c EPS notionally targeting $1.23 SP on a 20x multiple (which is conservative in this market).

$6M cash consideration funded with debt at 8.9% = $240k pa interest. $2.7M EBITDA less interest = $2.46M.

$2.46M / 40M = 6.1c (before tax)

If you do the same analysis on Seer that's showing similar EPS accretive metrics.

I'll do a more detailed analysis later, but at a high-level, if they can maintain earnings then this company is set to fly.

Congratulations to management and the board, great acquisition.

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I’d love to know in what world a 20x multiple is conservative for a service based IT business. Just look at the multiples for which TNT are acquiring these businesses and you will see what the market multiples are.

Tesserent have paid 2.5x revenue and 4x earnings for this acquisition.

this is just senseless ramping.

TNT Price at posting: 22.5¢ Sentiment: Buy Disclosure: Held
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