It depends on their free cashflow growth. Right now their free cashflow is somewhere between $70-80million a year. So market cap should be between $700-$1billion to be fairly valued. However, Raina has stated that their goal is to have annual revenues of 500mil, with a 40% margin in 5 years or $200 mil in earnings a year. That would translate into a $2-$3 billion company in 5 years. Assuming that the share price between now and then would be anywhere from a market cap of $700 mil to $3billion which is about $20 - $85 assuming share count stays the same.
And if you factor in an ongoing, active buyback program by the company for the foreseeable future while the shares are artificially depressed, the appreciation will become even more attractive on a per share basis.
Given that, I can't/won't give you a dollar figure of what is "THE" fair value, but ... I will confidently say that the current price is more than fair! At least that was my thinking when I increased my position by about 60% this morning. Gitty-up.
As I have stated many times before, the value of any stock is what someone is willing to pay for it. That said, the only reason EBIX is not trading in the high $20's is because of the numerous short attacks over the past three (3) years. Assuming the shorts are now reluctant to spew malicious lies about EBIX, my personal opinion is that it will be trading in the mid $20's in 3-4 months. I feel certain it will be trading near $20 by March 11th when earnings are announced. Again...that is only my opinion.