PIC – NASDAQ what-if

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.

About mcturra2000

Computer programmer living in Scotland.
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