Photo by nolifebeforecoffee'

I posted this over at Sharejunction and Channelnewsasia forum to address comments that starhub have too much debt that it is unsustainable.

Take the latest figures on starhub. you can reference them on my google spreadsheet.

Enterprise value and operating cashflow

The current share price = $2.28
The enterprise value, which is (Market Cap + Long Term Debt-Cash) = $2.32.

That’s close to current share price since its equity : longterm debt:short term debt ratio is 1:6:6

The FY2009 Free Cashflow = $0.26.

This free cashflow is what is earn in 2009 minus away any capital expenditure.

From this you will be able to see that Starhub to pay out $0.20 in dividend, they still have $0.06 cents left over. Read more…