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Otelco, Inc. Message Board

invest680432 2 posts  |  Last Activity: Feb 2, 2013 3:24 PM Member since: Feb 2, 2013
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    How much is this company worth?

    by invest680432 Feb 2, 2013 8:24 AM
    invest680432 invest680432 Feb 2, 2013 3:24 PM Flag

    If you look at the presentation in the filing, they're forecasting 30M EBITDA for the next 4-5 years including this year. The question remains what the NET earnings will be, but even if there's only 5M per year of net earnings, at 10x PE, the value of the company should be 50M.

  • Current IDS holders will own 85% of the company when it re-emerges. Currently, the market is putting a value of 23M for 85% of the company which translates to 27M for the whole company. Is this what this company is worth? Seems like an incredibly low valuation to me. From a quick look at the financials and forecasts, looks like this should be worth at the very least 50M and even then that's really cheap.

    What am I missing?