I have analyzed Mecoms accounts and latest reports.
The result is that I think Mecom shares seems a very strong buy?

Mecom facts:
2012 - EBITDA 89 million. euro.

Market:
Market Cap (GBP m) 107.87
= Circa 120 million. euro

Debt - only 130 million. euro (year than 2012)

The enterprise value, including debt = approx. 250 million. euro. = Only approx. 2.8 x EBITDA!

Free cash flow is approx. 80% of EBITDA (cash annoying business model), which is going strong debt repayment (probably debt free in 2 years).

I think the stock is too low priced, because in my view is nothing to suggest that Mecom can not maintain an EBITDA level forward in the region of 60-80 million. euro.

In about 2 years (debt-free) - equivalent current price of 92 pence for only 2 x free cash flow - and 1.5 x EBITDA (2014)

comparable companies trading at 7-8 times EBITDA
Within 2 years I see a potential price increase by 300-400% for the patient, equivalent to 1 pound today purchased for around 25pence.

I would like to hear others' comments - and attitude towards the values of Mecom based on current low share pricing?

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