Amtelecom Group Inc. Valuation (Amtelecom Communication)
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Table of Contents
Executive Summary3
What does it mean when a company "trades at a discount"? Is AMT really trading at a discount? 4
Do you agree with AGI's decision to break up the company? To sell the communication business rather than the courier business? 4-5
Size up the communication s industry and identify key success factors. Size up strengths and weaknesses of AMT?5-7
Assess the value of AMT using all available methods. Which valuation method is most appropriate for each sales alternative? What are the expected net proceeds from each alternative? (Exhibit A & B)8
As Stanley Stewart, what sales proposal would you recommend? How would you pitch it to the board? How would you market it to the potential investors/acquirers? 9

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* AGI strategic intent is to divest Amtelecom Communications, a wholly-subsidiary of AGI, in order to increase value for AGI shareholders. * AGI board unanimously approved to market off the business, but it subject to three conditions; * Retirement of current debt in full; * Payment of a reasonable dividend to AGI shareholders; and * The courier business had to be left with sufficient capital to stay in business.

* Proposal
To address the above situation, we propose the following valuation: * TEV/EBITDA multiple for both ICS and Amtelecom Communications * METHOD #1 - Using the Stock Price / Dividend Yield. * METHOD #2 -Average EBITDA Industry Trading Multiples * METHOD #3 - Using Average EBITDA Transaction Multiples (M&A Comparable Method) * METHOD #4 - Discount Cash Flow Valuation Analysis. * Fundamental Analysis using g @5% and WACC @6%

If the market value of a stock is lower than its intrinsic value, this stock is defined as “trades at a discount. To figure out whether AGI is