So I was bored tonight & decided to look at CDC, see what...

So I was bored tonight & decided to look at CDC, see what financial information I could gather from recent IFT reports, try to get a line on a valuation.

So firstly, CDC have a current DC capacity of 133 MW. By comparison, NXT have less than 90 MW capacity. NXT have a market capitalisation of $6.3 Bn so that in itself is a useful yard stick for valuing CDC.

NXT recently reported revenues of $121 million for the half year, with underlying EBITDA of $65 mill.

CDC - I couldn’t locate a revenues figure but the most recent full year results show EBITDAF of approx $150 mill (say $75 mill for the half year).

So CDC is bigger than NXT (although NXT have very aggressive growth plans & may catch up), and CDC has bigger earnings than NXT - ballpark 20% higher.

NXT market cap is ballpark 48 x EBITDA.

If we use the same metric to value CDC, 48 x annualised EBIDATF ($150 mill) we get a market cap around $7.3 Bn, or for the approximately half share of CDC owned by IFT we would be looking at $3.6-$3.7 Bn.

Even if we apply a significantly lower EBIDAF multiple than NXT; let’s say 38 instead of 48: The CDC valuation is $5.7 Bn or approx $2.8 Bn for the IFT share of the business.

Lets see Australian Super come back and make a bid for our share of the CDC business!