Bricktown Brewery (BEER) reports a stable EBITDA and an EBITDA margin of 13.2%. These are features that should interest market participants. With that, the company reports an asset/liability ratio below one and a large amount of debt. Noteholders are making the money on this name. The interest expenses are so elevated that the net income is negative. With all this information in mind, the company should sell shares at 7x-9x EBITDA. Both the financial risk and certain related party transactions noted in this article should not justify higher valuations.
Source: Prospectus
Source: Prospectus