This hopeful $2 per share is why I haven't sold yet. I...

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johnkovacc

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30/08/21

12:37

Post #: 55678736
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Originally posted by sailnyssa: ↑

Having regard to recent M & A data from the US I think the US business will attract a EBITDA multiple of at least 15x.

The US business is positioning itself nicely at the front of the ESG wave. Add to that US infrastructure spending and a low interest rate driven M & A boom and you can see that the terms of any sale of the US business should be highly favourable.

If we assume EBITDA for the US business of A$45m for FY22 (FY21 A$37.2m) then the US business alone is worth $1.74 per share.

If you value the Asia Pac business on a conservative EBITDA x 8 then it is worth around 18.5c on forward earnings of A$9m for FY22 (FY21 A$8m).

The independent expert valued Intega on an EBITDA multiple of around 8 for the purpose of the demerger. That was before the M & A boom ramped up.

Then you have ID which is harder to value but is certainly worth something. Let's say its worth 4c per share on EBITDA of A$2m x 8.

I think @CaptainBarnacles $2 plus on a sum of the parts basis is realistic.

Just my opinion. DYOR.

Cheers

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This hopeful $2 per share is why I haven't sold yet. I don't think anyone actually pays $2 but an acquisition at a price of $1.5 is highly likely.

If CDD is bought out by an American based firm, likely imo, then we should see a good boost on current SP.

If a strategic review falls through then we shouldn't see a huge fall based on the encouraging 20-21 financials and the substantial backlog in billables

CDD Price at posting: $1.03 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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