re: grd (valuation) As of today GRD has a market cap of $519m....

re: grd (valuation) As of today GRD has a market cap of $519m.

My valuation of the company without the Lancashire project was $1.80. Therefore I estimate that the market has increased after the announcement by about 92 cents per share on the Lancashire project or about $175m.

The EBITDA in the 2004 Annual Report was about $95m - therefore the CAP to EBITDA multiple was about 3.6 (Using my valuation).

GRDs share of the EBITDA from the Lancashire project amounts to about $82m. Multiplying that by the same multiple as above puts the value of the Lancashire project at around $1.50.

I estmate that fair value is around $3.40. However, given that there is some time before earnings start to flow through I think that there may be some tree shaking going on.

Also, of note, is the fact that there may be other contracts on the way.

I own.