Investor Presentation October 2021
INVESTOR PRESENTATION / OCTOBER 2023
APPENDIX 1: CONSIDERATIONS FOR
INDICATIVE VALUATION RANGES FOR VERDE
Public Company Trading Comparables: EV / Revenues and EV/EBITDA Multiples
Provided that Verde realizes its financial potential, we believe that the DeSPAC valuation is fair
LTM
2024E
2025E
2024E
2025E
Company Name
Enterprise
Value (EV)¹
EBITDA
Revenue
EBITDA Revenue
EBITDA
Revenue EBITDA
(%)
EBITDA
(%)
EV/Revenue EV/EBITDA
EV/Revenue EV/EBITDA
1 PureCycle Technologies, Inc.
1,394
(80)
109
14
13%
305
102
34%
12.78x
NM
4.58x
13.63x
2 Danimer Scientific, Inc.
623
50
(102)
173
(11)
-6%
351
28
8%
3.59x
NM
1.77x
22.16x
3 Origin Materials, Inc.
401
2
(43)
110
(56)
-51%
276
20
7%
3.66x
NM
1.45x
20.15x
Median
Mean
3.66x
NA
1.77x
20.15x
6.68x
NA
2.60x
18.65x
Valuation Ranges Based on Y2 Forecast and MT / Y3 Opportunities of Verde and Current Industry Trading Multiples²
.
Peer Comp Multiple
(Median - Mean)
Implied Reasonable EV
Valuation Ranges for Verde
~$250M to ~$500M
~$350M to ~$500M
18.65x-20.15x
Valuation Metrics (Mean/
Verde Revenue / EBITDA
Estimates or
Opportunities³
$60-$80M
~$200M
~$50M
3.66x-6.68x
1.77x-2.60x
Median)
Y2 Revenue
Y3 Revenue
Y3 EBITDA4
Source: RocSearch Analysis, as of Jun 12, 2023
1. Enterprise value based on 30-Day VWAP.
2. Valuation is based on FY24 and FY25 Revenue and EBITDA multiples.
3. Based on financial forecast for Yr 1 and Yr 2 and mid-term estimates for Yr 3.
4. Significantly higher implied valuation of Verde based on EBITDA multiple is by virtue of its superior
profit potential (much higher EBITDA %)
Up to $1B
•
.
Verde's financial outlook and three sets of current industry trading multiples
can potentially support an indicative enterprise value range between $300M
and $700M.
Verde's EV could arguably command a premium if it can successfully
become one of the first scalable, fully commercialized, superior solution that
we believe it has a reasonable chance to achieve.
Verde's potentially superior EBITDA profile in the medium to long term
arguably suggests a higher valuation potential.
Hence, Verde's pre-money EV of $365M (pro forma EV of $433M) could
arguably represent a fair value or even a discount to what we believe could
be its potential indicative valuation range of $400M to $800M if it were to
successfully realize its growth and profitability aspirations.
24View entire presentation