Ultralife Taiwan JV
Little, if any, analysis has been presented regarding UTI, a 41% owned JV of Ultralife Batteries.
Using conservative assumptions, the value of ULBI's investment in Ultralife Taiwan is as follows:
The valuations are based upon the completion of the second battery factory in 2002. Ground was broken on the second factory in April 2001. The two factories will have a total manufacturing capacity of 56,400,000 batteries per year. It will be the newest, most modern, fully automated battery factory in the world.
Based on full production, at a multiple of sales (1.5x), ULBI's (41%) share will have a value of $578,215,620, or $51.63 per share.
Based on a conservative PE of 22, the value is $848,049,576, or $75.72 per share.
This is hidden value, it is not reflected in the present price of ULBI's stock.
Additionally, ULBI North America, and ULBI Europe are expected to reach cash flow break even by the December 2001 calendar quarter and to turn profitable by the June 2001 calendar quarter. |
