Valuecruncher places a mid-point valuation of $1.22 per share on Singapore Yellow Pages with a sensitivity range of $1.16 to $1.28 per share. The mid-point valuation is consistent with the current share price of $1.21.
The Valuecruncher valuation implies a forecast EV/EBITDA multiple of 12.6 compared with the current market multiple of 12.5. The Yell Group PLC which operates directory services in a number of countries including the UK and USA is currently trading at a forecast EV/EBITDA multiple of 9.5. The Yell Group experienced a 20% drop in it’s share price in April 2007 after “revising” earnings estimates for their U.S. operations. The New Zealand Yellow Pages business was recently purchased by a private equity consortium for a forecast EV/EBITDA multiple of approximately 13.
Valuecruncher has forecast relatively stable EBIT margins of approximately 35% with short-term revenue growth of 5.7%. Valuecruncher has used a cost of capital of 10% and a long-term growth rate of 2.5%.