RELATIVE VALUATION ATTEMPT --> BIDS @ CDN$424.14
Assumed BII was somewhere in between EBAY and UBID
Calculated each company's market capitalization at their 52 week
high and low as follows:
No. Shares Hi/Lo Mkt. Cap Hi/Lo
UBID: 9,147,000 189/30 US$1.728mm/US$0.274mm
EBAY: 120,817,000 195/161 US$25,559mm/US$19,681mm
Take the average Mkt. Caps, or of the four numbers, and this
should equal = US$11,310.50mm
Assume this as BIDS Mkt. Cap. with 40mm shares outstanding, and
the average price would be:
US$282.76
CDN$424.14 -- using a $1.50 exchange rate
Conclusion, when looking at the relative valuations of BII/BIDS to
its NASDAQ counterparts, it is extremely undervalued. Seeing upwards
of US$50.00 on the new listing remains an understatement. This stock
will be going way higher in the long-run.
Any comments or better calculations would be greatly appreciated.
Regards,
Stallion |
