Thank you for the comprehensive write-up. I don't follow the math here why you double the multiple -- are you back solving for the implied EV/EBITDA of 11x (given EBITDA-Capex and EV/ EBITDA-Capex --> EV)?
"I get that number by looking at after-capex cash flow: WOW’s EBITDA margins are ~39%, and their capex intensity is ~20%. So you can b…
Thank you for the comprehensive write-up. I don't follow the math here why you double the multiple -- are you back solving for the implied EV/EBITDA of 11x (given EBITDA-Capex and EV/ EBITDA-Capex --> EV)?
"I get that number by looking at after-capex cash flow: WOW’s EBITDA margins are ~39%, and their capex intensity is ~20%. So you can basically double WOW’s multiple to get their after tax cash flow multiple (i.e. 11x EBITDA equals ~22x (EBITDA - capex) multiple)."
Thank you for the comprehensive write-up. I don't follow the math here why you double the multiple -- are you back solving for the implied EV/EBITDA of 11x (given EBITDA-Capex and EV/ EBITDA-Capex --> EV)?
"I get that number by looking at after-capex cash flow: WOW’s EBITDA margins are ~39%, and their capex intensity is ~20%. So you can basically double WOW’s multiple to get their after tax cash flow multiple (i.e. 11x EBITDA equals ~22x (EBITDA - capex) multiple)."