As first reported by Street Talk Online on Monday, Bell Potter analyst Chris Savage put a $266 million to $315 million enterprise value on the business, which implied 8.6-times to 10.2-times forecast 2016 financial year EBITDA, and said the equity value was $276 million to $325 million.
The equity value implied 13.1-times to 15.4-times forecast net profit after tax and amortisation.
The research shows McGrath expects to make more than $30 million in earnings before interest, tax, depreciation and amortisation in the 2016 financial year.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
As first reported by Street Talk Online on Monday, Bell Potter analyst Chris Savage put a $266 million to $315 million enterprise value on the business, which implied 8.6-times to 10.2-times forecast 2016 financial year EBITDA, and said the equity value was $276 million to $325 million.
