$400M Annual Revenue
$176M Annual EBITDA
43% EBITDA Margins
10%+ Growth
EV/EBITDA ex-Print
($339+$672)/$176M = 5.7x
Considering that the market rate for this sort of business is higher, I find this unsustainably cheap.
Oh, and please pay no attention to the FACT that you get an additional $275M+ of EBITDA from the print side thrown in for free.
I am compelled to BUY. Anyone who understands this situation probably feels the same way.
Here is a quick list of EV/EBITDA comparables that I didn’t ferret and just pulled:
http://seekingalpha.com/article/315441-7-online-advertising-stocks-goldman-sachs-isn-t-bullish-about
AOL – 5.1x (perhaps aol is undervalued as well…, too bad they don’t get a comparable print business thrown in.)
SCOR – 40.2x probably a crap multiple here)
IACI – 8.61x
LNKD – 126x (Linkedin is so far out of any value investor’s price range that it’s hardly a comparable)
P – NA no ebitda
GOOG – 14.83x
RLOC – 28.2x
OMC – 8.88x
IPG – 8.88x