ROCK Valuation?26 Sep 2023 23:11
I’ve been thinking on how to value ROCK when it comes out of suspension. Just to be clear, I’m not a valuer; this is just what I think could be a reasonable estimate. If anyone has any comments or better ways of valuing ROCK feel free to post.
Based on the below, I’m thinking 2-3 p is a reasonable price. Which makes sense why the II’s were willing to come in on the deal at a premium to market value.
Here are the details with two different scenarios.
Details
Target acquisition EBITDA: 2.46 M £/yr.
Target acquisition net assets: 45.4 M £
ROCK shares on issue post deal: 2,544,547,293
MCAP of ROCK pre deal: 6.6732 M £
Valuation scenario 1
ROCK Valuation = Acquisition EBITDA * 10 + acquisition asset value + original ROCK MCAP
ROCK Valuation = (2.46 x 10) + 45.4 + 6.67 = 76.67 M £
Scenario 1 ROCK valuation = 76.67 M £
Scenario 1 ROCK valuation share price = £0.0301 (3.01 p)
Valuation scenario 2
ROCK Valuation = Acquisition EBITDA + acquisition asset value + original ROCK MCAP
ROCK Valuation = 2.46 + 45.4 + 6.64 = 54.53 M £
Scenario 1 ROCK valuation = 54.53 M £
Scenario 1 ROCK valuation share price = £0.0214 (2.14 p)
Thoughts?
Has anyone else done a valuation estimation?