Using mid range guidance these are my calculations:
| Revenue | EBITDA | NPAT | EV/EBITDA | DEBT/EBITDA | Share price (PE 12) |
|---|
| 1 | $222M | $74.5M | $31.8M | 5.91 | 0.85 | $1.27 |
|---|
This is a very strong position and probably conservative considering ACF normally achieve/exceed upper guidance. That level of DEBT/EBITDA provides the opportunity for another decent acquisition.
They have a further $15M of debt headroom. They could access this and still remain within their DEBT/EBITDA target. Add $6M cash at bank and we are looking at consideration of up to $21m. At a 3.8x multiple that is a company with $5.5M EBITDA and around $14M annual revenue.
Only 2 days until results are released.
(20min delay)