Dec. 20 at 5:43 PM
$BCHT
RM has quoted reactivated carbon facilitiies with 50m revs at near 50% margin. lets take a haircut on both and model out 40&40
Assume Birchtech builds two reactivated carbon facilities with long-term offtake contracts. Each facility does about
$40 million in annual revenue at a 40% margin, producing roughly
$12 million of EBITDA. Together, that’s
$80 million of revenue and
$24 million of EBITDA.
Each plant costs about
$80 million to build, 5% is equity the rest financed.
Birchtech puts up about
$4 million per facility and finances the rest with project debt. Even with conservative financing, the two plants together generate roughly
$7 million per year of cash flow to equity.
If Birchtech uplists to the NYSE, similar contracted environmental infrastructure businesses typically trade at 12–14× EBITDA. Applying that range to
$24 million of EBITDA implies an enterprise value of
$290–335 million.