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Cost of Vocus NZ, page-5

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21/02/18

11:17

Post #: 31215955
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Originally posted by BRAGG ↑

I hope I'm wrong but maybe the sale price for NZ will be the next big disappointment. Just been throwing some back of the envelope figures around. Vocus is currently selling for 4.4 times its estimated full year EBITDA of $365m. If NZ business reported $29m EBITDA for half year this equates to around $60m annually. Applying the same 4.4 times ratio gives a market value of $264m - well below $500m?

Maybe the some of the parts is worth more than the whole, and you would probably assume the Vocus ratio is slightly distressed and discounts what would be paid for the takeover of a business, but that's a big premium for the NZ business. What am I missing here?

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NZ telco industry is in a lot better shape than Australia (eg. they have better margins)

I think they are expecting EV/EBITDA of x9, which is similar to what spark trades at.

Vocus EV is pushed down because of debt, but NZ wont have that burden.

VOC Price at posting: $2.46 Sentiment: Buy Disclosure: Held
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0 Great analysis

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