Replies to post #158828 on Value Microcaps Motherboard

[abh3vt]

Swick, I agree with you about the importance of using EV/EBITDA multiples when looking at relative valuations, but I think you have one part backward:

So one would subtract debt from enterprise value, because it is the debtholder’s claim on the business. You would add cash on the company’s balance sheet, because it is a non-operating asset and is not generating earnings that are included in EBITDA.

Its actually the opposite. EV = market cap + debt - cash.

http://www.investopedia.com/terms/e/enterprisevalue.asp

EV/EBITDA values are sometimes better than straight PE because of non-cash expenses that can hurt GAAP earnings results of companies that use stock options, acquire intangible assets, or require lots of plant and equipment and must depreciate those assets.

[Knowledge is King]

Thanks for the extensive analysis/DD on AYSI, Swick. I agree the risk/reward here is VERY attractive and I will continue to buy at current levels...

[Knowledge is King]

AYSI releases Q1 results! $.09 vs $.05


Trailing 12 month EPS are now $.36, book value is $1.28/share, and cash-per-share is $.46. Backing out the cash, the stock is trading at a P/E of less than one.

Resumption of quarterly reporting is big news for these guys!


http://alloysteel.net/alloysteel-international/investor-relations/