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SunEdison - $721.95M a rough estimate of IPO Spinoff valuation



August 22, 2013 – Comments (0) | RELATED TICKERS: SUNEQ , TAN , KWT

Guys before I begin please note this is a basic rough estimate based on current sales multiple of (p/s = 0.77).

The Semiconductor business as shown on page 15 of the the 10Q filing shows it had sales of $468.8M for the last 6 months of reported earnings.

Assuming similar sales for the next 6 months = 2x $468.8M = $937.6M


$937.6M x current p/s sales ratio of 0.77 = $721.95M 


SunEdison stated it will keep a small stake in the IPO spinoff but did not give a percentage.

Now we have a starting point to begin our discussions.

I would like inputs from the thousands of brilliant minds on the Fool as to why this is not reasonable valuation either on the lowside or upside.   


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