YRC Worldwide Inc (YRCW)

[GuyBig]

EV = MC + D
Enterprise Value = Market Capitalization + Debt
EV = (#Shares X PPS) + Debt
Debt = $1137 million
There are a little less than 30 million shares O/S
At today's close the Enterprise Value of YRCW was
$1137 million PLUS
30 million shares X $23.70/share or $711 million
Equaling and Enterprise Value of $1848 million.

Assuming sales stay around $5 billion, the MC is about 14% of sales, still very low compared to its peers, but very high considering how close to bankruptcy YRCW has been.

The EV is about 36% of sales. The EV rising to 50% of sales is reasonable to expect inside of a year or so, if YRCW starts having positive net income AFTER taxes, depreciation, and interest every quarter.

NOT EBITDA, NOT Earnings BEFORE taxes, depreciation, and interest but actual NET INCOME AFTER TAXES.

That would produce and Enterprise Value of $2500 million and a price per share of $45.

A coincident 5% increase in sales with positive net income for two or three quarters could push the stock over $50.