yellow pages non-crisis pricing. tldr; EV/EBITDA should at least be 3.5x
december 2009 spmd
856 EBITDA
2600 net debt
$40/share
15.67M shares
EV/EBITDA = 3.76
debt/ebitda = 3.0
Dexo 2009
ebitda 1151
net debt $2888
$30/share
50.81M shares
EV/EBITDA = 3.83
debt/ebitda = 2.5
yellow media december 2010
price $6
shares outstanding 516M
net debt $2152
EBITDA 898.8M
EV/EBITDA = 5.83
debt/ebitda = 2.39
debt/ebitda for spmd/dexo merger is 3.0x. implies non-crisis market value should be 0.5x ebitda, but also that the debt shouldn’t be trading at a discount anymore.