THANKS FOR YOUR NOTE, YOU ARE ABSOLUTELY CORRECT! .
The lastest 12 months does include charges related to Murray and should be added back to further enhance, or lower, the ratio.
All the best,
I have not gone back over the financials to do an exact calculation, but it seems to me that the trailing 12 months EBITA may be low due to absorbtion of the losses from the Murray problems. It those are treated as extraordinary and excluded to arrive at what I would call a normilized EBITDA then the value would be even greater for a potential buyer.
I agree with you�..
The calculation as a possible LBO candidate is market cap. as the numerator and the denominator EBIDTA.
For the 12 months ending 9/2005 EBIDTA was
$ 273.90 Million and the current market cap. $ 2.0 Billion.
2000./273.9 = or 7.30x. This pricing is well within today�s pricing range for purchase by a private equity firm. Also helpful is that 37 % of the shares are held by 10 institutions and the insiders only 2 %.
I have not commented on the outlook for the company; however I do recall the Electrolux and Murray problems .
I do have many years experience in these matters. Hope this helps, regards and thanks for your comments.
"Note last three days volume ,going back to normal amounts. I suspect there was one institution buyer earlier this week."
Don't know about the institution part but volume has actually been a LOT higher than normal the last three days and looks to be also today.
,THANK YOU FO YOUR REPLY..
Note last three days volume ,going back to normal amounts. I suspect there was one institution buyer earlier this week.
Today will be interesting as the stock appears to have some support at
$ 39.00 level
Please re-read my notes. Income from operations from the �cash flow" statement ...Usually EBIDTA is the denominator to determine ratio. Have used EBIDTA plus working capital changes�
Good luck... best