Dominion Bridge Corp. (DBCO) Message Board

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Microcap & Penny Stocks : Dominion Bridge Corp. (DBCO)

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To: KZAP who wrote (417)	2/11/1998 6:32:00 PM
From: Chien Li	Read Replies (2) of 535

Past performance of MDC shows an EBITDA/EBIT ratio of 1.5. Today's announcement shows a half year EBIT of A$13 mil, which translates to an EBITDA of A$19.5 mil. With a 17% growth rate shown today, we can project an EBITDA of A$22.8 for the second half, which brings the annual EBITDA to A$42.3 mil. Using today's exchange rate (0.69), that translates to US $ 22.9 mil. For a not unreasonable price of 5-10 times EBITDA, the price tag for MDC could be US $115-229 mil. DBCO owns 63%, so it gets US $72-155 mil, or $2.3 to $4.6 per DBCO share. For an operation like MDC, a purchase price of 5 times EBITDA is probably conservative. In addition, the exchange rate should move higher as the Asia crisis subsides. With this rationale, MDC could worth $3 per share.

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