Last month I wrote an article here on Seeking Alpha explaining why - based on my estimate of 2014 EBITDA - I believe Broadwind Energy (NASDAQ:BWEN) should be worth $8-$12/share over the next year or so. Now I'd like to approach the company's valuation from a different angle.
Broadwind's gearing business (Brad Foote Gear Works, Inc.) is doing approximately $50 million/year in revenue. In 2011 Philadelphia Gear was sold to Timken for 2.4x revenue and in 2012 Milwaukee Gear was sold to Regal Beloit for approximately 1.3x revenue. (These were both publicly announced transactions and you can Google them and see the details for yourself.)
Using the lesser figure of 1.3x revenue would value Broadwind's gearing division at...
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