It's a 20x multiple on earnings (mortgage sector average if I remember correctly), which wouldn't give $25pps. Don't get me wrong, I wouldn't complain with $25 pps post merger but I'm not expecting it.
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This is off the top of my head, I'll have to go back to the S-4 for the numbers but I'm tired and don't feel like doing so.
For the purposes of evaluating WMIH/NSM (post merger), a multiple of 4x (derived from transactions of acquisitions by other companies in this market sector - basically they used the multiple of what other people used to acquire mortgage servicers) was used to get the implied value of $1.83 to $2.01 pps (post dilution + earnings, etc.)
side note: 10-16% discounted implied value is $1.58 to $1.83 pps
Side note: Other valuations were from as low as 1.1x to... and if I recall correctly as high as 8.5x.
Based off the non-discounted valuation at 4x of $1.83 to $2.01 (which seems about right given what we know about the conversion ratio of NSM:WMIH shares), a market valuation with a sector average mulitple of 20x will result in market valuation of $9.15 to $10.05 pps.
20/4 = 5
5x1.83 = 9.15
5x2.01 = 10.05
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