Charah Solutions IPO: Undervalued, But Large Financial Risk

Charah Solutions IPO: Undervalued, But Large Financial Risk

Summary Charah will sell 5,294,117 shares at a maximum price of $18.00 per share. EV/EBITDA ratio is 8.9x, which seems somewhat undervalued. Leverage is very significant. The company will use the proceeds from the IPO to repay the debt. Cash flows and capex seem to be very predictable, which is ideal for BCP, the private equity controlling the company. With a very established business model and stable cash flows, investors will, a priori, appreciate Charah…

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