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Technology Stocks : Loral Space & Communications

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To: Valueman who wrote (1806)1/30/1998 11:26:00 AM
From: Snake  Read Replies (1) of 10852
 
Valueman,

Upon further thinking last night, I do agree that the multiple should be less than 10. The value of SS/L was set at around $760 million when Loral increased its ownership last year. That means that on $1.8 billion revs/ $138 million EBITDA, the price was a multiple of 1998 EBITDA of around 5.5. Again, this is looking at it in a rough way, but shows SS/L is not a major driver of price in Loral. Anything more than the amount it has already been driven down is "panic selling" or someone not familiar with the composition of Loral.

Bill
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