Interesting the Lonergan valuation applies a multiple to the day surgeries ebitda earnings component of around 8/9 times, compared to comparable market averages for FY 16 forecast of around 11 times.
It also uses existing earnings excluding any upside from planned acquisitions. Conservatism understood.
Valuation upside exists in an uplift in multiple to comparables once acquisitions and continuing day surgeries growth continues, being in region of additional 15 cents (deriving total say $1.26) a share using the multiple difference for this business unit based on existing earnings.
VEI Price at posting:
87.5¢ Sentiment: Buy Disclosure: Not Held
