Replies to post #1429 on Pyxus International Inc (PYYX)

[SSEA]

I do like this. I would say, however, that it's almost always best to use enterprise value as a starting point because it smooths out the differences in capital structure (debt vs. equity) between the company you are valuing and the comparable you are valuing against.

So, for instance...

In your price to sales calculation (not at all my preferred, FWIW), you'd want to remove something like $700 mm of LT Debt from the $4.7 billion and then it's $4 billion over 25 mm shares, which is $160 not $188.

I tend to use EV:EBITDA most commonly... that way you get the total marketplace value against something very close to cash operating income... and you've eliminated all the noise that come form variations in capital structure among the comparables.