Just as some companies manage to build value through acquisitions where "1+1" equals more than two, investors apparently think that the two major halves of Rayonier (RYN) are worth more apart than together. Seeing as how there really never were the hoped-for synergies between the company's timber assets and its Performance Fibers business, the split likely won't do either much harm, and it does give investors the opportunity to invest in a much "purer" timber REIT after the split is finalized.
Together or apart, I think Rayonier is worth about $46 to $47 today on a sum-of-the-parts basis. With an EV/EBITDA approach using next year's expected EBITDA showing a fair value of only about $35, it's clear...
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