Vitaco is being marketed at a midpoint multiple of 2016 earnings at around 20 times, or an enterprise value that is over $300m on ebitda forecast of $27.5m for 2016, being only $1.5m more than Vision's own 2016 guidance.
At $300m enterprise value, Vision would be worth upwards of $1.60 a share.
This is the near term upside potential here, being what the core Day Surgeries business in Vision can deliver shareholders as its growth continues and clarity, including visibility, on its growth potential continues to emerge.
VEI Price at posting:
92.0¢ Sentiment: Buy Disclosure: Not Held
