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Have you considered the debt while calculating the multiple? It...

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masuas

61 Posts.

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31/01/23

12:59

Post #: 65975128
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Originally posted by ich: ↑

Good buying opportunity today IMO. What is the value of a company with sales of $180mill and EBITDA of $15mill. Surely it's at least 5 x EBITDA = $75mill. Even if EBITDA were only $12mill it's still worth at least $60mill IMO, and yet it's valued at $42mill today. The market often over-reacts to the downside, as well as the upside.

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Have you considered the debt while calculating the multiple? It is EV/EBITDA, not MC/EBITDA.

Also need to consider mismanagement (including capital and business) within the organisation, particularly from executives for a long time.

A lot to do to get this business on track and earn investors' trust.

Last edited by masuas: 31/01/23

BWX Price at posting: 21.5¢ Sentiment: None Disclosure: Held
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