Valuation Section of Overview
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Conor MacNeil
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Tetiana Afanasieva
Hi Dan,
For EV/EBITDA, the LTM EBITDA value used is not the exact estimates value but rather the financial value.
Specifically, we use EBITDA (Incl. Equity Inc. from Affiliates, Lease Adjusted).
The exact formula is as follows:
EBITDA (Incl. Equity Inc. from Affiliates) is a supplemental line item in the Standard, Insurance, Real Estate, and Utility templates. It consists of the following components:
* EBIT (Incl. Equity Inc. from Affiliates)
* D&A for EBITDA
* Lease Adjustment for EBITDA
This measure is used by Capital IQ in the calculation of TEV/EBITDA multiples to ensure that Equity Method Investments and Leases are properly included as components of TEV
I have double checked with our data provider S&P Capital IQ that latest LTM EBITDA , Lease Adjusted is 7.87 M for LPRO:US
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Hazel Mollusk
Tetiana Afanasieva Thanks. I guess the issue here is it creates non-conformity with management reported numbers in earnings releases since you're not including adjustments (https://investors.openlending.com/static-files/da027be6-051e-4fe7-bb02-034b47ce5e58)(https://investors.openlending.com/financial-information/quarterly-results) See the attached links to the quarterly results.
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Tetiana Afanasieva
Hazel Mollusk: Thank you for sharing the links and highlighting the discrepancy. I understand your concern regarding the non-conformity with management-reported numbers in earnings releases.
The numbers provided by S&P Capital IQ are standardized to ensure consistency across companies and industries. However, I have contacted S&P Capital IQ support to obtain clarification on this matter from their end. I will keep you updated if I receive any additional information.
Conor MacNeil
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Conor MacNeil
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Conor MacNeil
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Conor MacNeil
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Conor MacNeil
Hi Dan, you can share an example using a screenshot, full screen preferably. Thank you.
Conor MacNeil
As there has been no reply for more than 3 days I will close this ticket. Contact us if the issue persists.
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Hazel Mollusk
Conor MacNeil Hi Connor, apologies -- didn't see this notification. See attached a screenshot from one example (LPRO) I've color coordinated so you can follow.
Conor MacNeil
Hazel Mollusk: This is great, thanks Dan. We will investigate.