Pyxus International Inc (PYYX)

[SSEA]

That's all more or less correct, now let's take MO as a comparison... they have an EV:EBITDA of 12.2x.

So, just for the sake of illustration, if we say PYYX is worth not 9x but 12x... then we have to close a 3x EBITDA gap in the valuation.

The debt is more or less a fixed part of the capital structure, so all the incremental closing of the gap accrues to the equity portion...

so, to keep it simple, let's say the TTM EBITDA is $100 mm... and we need to get from 9 to 12, so we have to add $300 mm of valuation to the equity portion (again, because debt is debt and it's fixed).

So to get there, $32 million has to become $332 million... and there you have it.