Short fall applications, page-5

Given that MLB have now closed the Outware acquisition back in Feb, and including the latest acquisition of WME Group, i am expecting Run-Rate Revenues of between $220M to $260M. I like the funding mix of both acquisitions, and i think the acquisition multiples are sensibly priced. They should provide significant growth for MLB in the coming years - Management have done a great job.

As per management guidance, Mid-Range FY17 EBITDA guidance is expected to be $39.5M. Assuming FY17 D&A of $10.67M, FY17 Interest Expense of $1.45M and 32.5% Corp Tax rate for FY17, my calcs have NPAT of $18.5M for FY17.

Taking into consideration the dilution from these two deals, Current Shares Outstanding are 116.85M so EPS for FY17 should be around $0.158/share. Slap a 21 x multiple on it and the stocks probably worth around $3.32 at this stage. Given the momentum in the business, i would not be surprised to see Management continue their acquisition spree going forward.