But at some 10.5x EV/EBITDA (which is where is stock is now trading - even after today's sahre price crunch) that point of buying is still a way off, in my view.
Based on an EV/EBITDA multiple of 8x (which is the maximum I suspect the market will now want to pay for this business given this debacle) and even using $60mpa of EBITDA (generously ahead of FY17's implied EBITDA guidance of between $52m and $53m), this works out to an Enterprise Value for the business of $480m.
Netting off the $50m of Net Debt leaves an equity value of $430m.
In per share terms, that's a share price of $2.15.
And that price level, I think, merely represents fair value.
In order to actually make an investment on under-valuation grounds would require a share price closer to $1.70 (equivalent to 6.5x EV/EBITDA), in my opinion.
ISD Price at posting:
$2.53 Sentiment: None Disclosure: Not Held
