Could you explain how you got 400k normalized yearly EBIT and your valuation multiple as well. Do u think it would be better to do a dcf to cross check the multiple
Just a simple estimate. If the company operates around breakeven and the axis segment generated a $400k loss, I assume that removing the loss-making segment will should flow through to future operating profit.
This may prove to be conservative if the majority of Axis related expenses are eliminated and the core business remains stable.
Could you explain how you got 400k normalized yearly EBIT and your valuation multiple as well. Do u think it would be better to do a dcf to cross check the multiple
Just a simple estimate. If the company operates around breakeven and the axis segment generated a $400k loss, I assume that removing the loss-making segment will should flow through to future operating profit.
This may prove to be conservative if the majority of Axis related expenses are eliminated and the core business remains stable.