In FY18, DADI generated revenue of $198.2 million and EBITDA of $51.6 million. just like bingo for arhuement sake DADI will be flat EBITDA and if you add $51.6Million to median EBITDA FY19 Bingo $94 Millions that comes to post deal EBITDA of $145.6 millions.
Points to be noted with above numbers....... I have taken no growth from both Bingo and DADI in to account and i have not taken the synergies $12 millions that management spoke about (we would save post merger) and most importantly the above numbers are FY19 EBITDA and we are in the last leg of FY19 we all know markets always look ahead............... IMO we cant get more conservative than this even if we tried
Now with $145.6 millions EBITDA; $950 million Mcap and post deal Debt of 150 Millions (with Debt i stand to be corrected)
Bingos EV / EBITDA would be 7.5 compare that with Clean ways 11Even if you give clean away 22% premium Bingo has a minimum 20% room upside And IMO we only have 4 months untill we hit FY20
I will be surprised if we dont see $2 by the end of march.
catalysts would be post deal presentation which highlights all the synergies, change in brokers view, Market buy back, Mr market coming to terms again that Bingo is a Growth stock (Feb 18 announcement was just a blip).
https://www.incleanmag.com.au/bingo-industries-to-buy-dial-a-dump/AIMO only
Please do your research the above numbers are approximate numbers only and they stand to be corrected as I am no expert just a student of stock markets
SS
