I notice quite a few people trying to value off EBITDA.
With depreciation & amortisation running at around 23% of EBITDA, I think it is wiser to to value based on EBIT.
That depreciation & amortisation will charge will need to be spent again in the future.
On a conservative basis, I think good value will arise on a multiple of 5 x last years EBIT.
At $81m 2017 ebit x 5 = $405
120 million shares on issue
Conservative value share price $3.37
GXL Price at posting:
$3.98 Sentiment: None Disclosure: Not Held
