This post is to look at a recent development which may have an impact on Eckert & Ziegler.
Nordion is a similar company in Canada, which has recently i.e. yesterday been acquired.
Eckert & Ziegler has an Enterprise Value / EBITDA multiple of 4.87.
Data provided by Capital IQ, except where noted.
Nordion which has been acquired was having a multiple of 6.05.
This means that an acquisition price of 11.75, Nordion has a EV/EBITDA multiple of 6.82.
Applying that multiple to Eckert & Ziegler, provides one with a target price of 34.01, against its current price of 24.26.
The upside is around 40%.
I am not currently long the stock as I wanted to wait till it hits 20.87 before buying it.
However, with Nordion's acquisition, chances are somebody will make the connection like me and bid it up.
Hence, I am planning to go long within the next couple of days.