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$1.14 redhill education limited

Unless I am mistaken you have to take the cash position with...

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Nick_btw1

219 Posts.

19

24/12/20

23:05

Post #: 49812071
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Originally posted by jace.h: ↑

Headline metrics based on pages 5 and 6 of the presentation:

RDH
$40.0m market capitalisation
$21.5m net cash
$18.5m enterprise value
$64.6m revenue
$10.8m EBITDA
EV/Revenue = 0.3
EV/EBITDA = 1.7

UCW
$21.5m market capitalisation
$4.5m net cash
$17.0m enterprise value
$25.1m revenue
$6.3m EBITDA
EV/Revenue = 0.7
EV/EBITDA = 2.7

Both companies look undervalued. RDH more than UCW. It is as though UCW doesn't want to give RDH credit for their net cash position.

Viburnum holds 6.2% of RDH. More importantly, they also hold 10.8% of UCW. So it makes sense they're in favour.

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Unless I am mistaken you have to take the cash position with some caution. ie most education providers have cash on hand which is upfront tuition fees that have to be delivered. So while it looks good on the balance sheet it cant be used for anything as it is there to deliver the paid for courses. I am happy to be educated further on this as I am no accountant.
RDH Price at posting: 80.0¢ Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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