With all the news of PIC’s possible purchase of Motorola Home, there is considerable conviction that PIC will obtain a listing on NASDAQ.
I haven't seen any numbers on the deal yet - and this is a very quick back-of-the-envelope scribbling, but I wanted to see what kind of valuation PIC would get if it obtained a NASDAQ listing purely on the basis of current numbers. If the deal can in any way increase shareholder value, then so much the better (I'm assuming that it doesn't take it away). Working quickly, I chose a number of comparatives: EV/Sales EV/EBITDA ARRS 1.22 11.57 HLIT 0.66 17.20 AUDC 0.74 15.90 ---- ----- Average 0.87 14.89 PIC 0.50 5.67 Scale 1.74 2.63 So, let's say that PIC should be trading at about double its current EV. Implied EV = 774 x 2 = 1548 lop off net debt 202 ---- implied market cap 1346 current market cap 572 So, the relative market cap is 2.4X current. Not so bad.