You can also see in the table that by 2023 the enterprise revenue-to-sales multiple falls from 27 times in 2021 to just 8 times in 2023. The deal will create a combined entity, EVBox Group, with a … EVBox Group to go public in SPAC deal. They grow on average 74.5% annually over the next three years. (Bloomberg) -- TPG Pace Beneficial Finance Corp., a special purpose acquisition company, agreed to acquire EV Charged BV, a unit of French utility Engie SA that specializes in electric-vehicle charging technology. This lowers both the absolute numbers so that by 2023 revenue is actually just $296 million, instead of over $450 million. For one, any investor would want to have a hurdle rate or opportunity-cost rate. Powered by WordPress using DisruptPress Theme. TPGY touched the $30 level before 2020 was over, but there were price fluctuations after that. Looking closely at these numbers it is clear that EVBox Group expects its revenue to essentially go through the roof. This implies that EVBox should have a slightly higher premium. Pace Beneficial (TPGY) announced last month that the special purpose acquisition company would be acquiring EVBox Group from their parent company Engie New … You can see this calculation in the table I have put together at the right. TPG Pace raised capital through an initial public offering for the purpose of entering into a merger, stock purchase or similar business combination with one or more … We can use the total cash raised from the deal, minus the debt repayments and deal costs, to determine the pro forma enterprise value. Engie SA ENGIY 0.22% -backed electric vehicle charging company EVBox Group is merging with TPG Pace Beneficial Finance Corp TPGY 1.61%, a TPG Capital-backed blank check company, to go public. It shows that by 2023 revenue will be $450 million. In addition, I have added in the warrants which are all in-the-money. TPG Pace Beneficial Finance Corp., a special purpose acquisition company, agreed to acquire EV Charged BV, a unit of French utility Engie … The next table on the right shows these adjusted revenue numbers. Therefore, TPGY stock is worth somewhere between a gain of 41% and a gain of 93%, or an average of $49.32 per share. Copyright © 2021 by Your Stock Guide. All articles, images, product names, logos, and brands are property of their respective owners. This lowers both the absolute numbers so that by 2023 revenue is actually just $296 million, instead of over $450 million. On Dec. 10, 2020, a SPAC (special purpose acquisition company) called TPG Pace Beneficial Corp. (NYSE:TPGY) announced a reverse merger with a European charging company EVBox Group. TPGY stock (the new symbol will be EVB after the merger) is worth at least 67% more at $49.32 when the SPAC merger closes. This article will explain how I came up with these calculations. It also raises the 2023 enterprise value-to-sales ratio to 13.2 times. Microsoft and partners may be compensated if you purchase something through recommended links in this article. Like us on Facebook to see similar stories, Top 10 Signs You've Already Had Coronavirus, Mitch McConnell Comments Further Isolate Republicans Pushing Against Donald Trump. Shares of TPG Pace Beneficial Finance Corp., a blank-check company formed by TPG, rose 116% after hours as it agreed to merge with EVBox Group, which focuses on electric vehicle charging. That is incredible. We can use these figures to find its enterprise value-to-sales ratios as well as its target market cap and price. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. All company, product and service names used in this website are for identification purposes only. For example, on page 45 of the slide presentation, we can use the number of shares listed on a pro forma basis once the merger closes to set the pro forma market capitalization. EVBox Group plans to list on the New York Stock Exchange through a merger with investment firm TPG Pace Beneficial Finance. In addition, I have added in the warrants which are all in-the-money. The business combination values EVBox at an implied $969 million enterprise value, and a total pro-forma equity value of approximately $1.4 billion. TPGY stock (the new symbol will be EVB after the merger) is worth at least 67% more at $49.32 when the SPAC merger closes. For example, the table at the right shows my analysis of ChargePoint’s enterprise value-to-sales ratios, including on an adjusted basis. Therefore, the average between the two numbers is $49.32 per share. On the date of publication, Mark R. Hake does not hold a long or short position in any of the stocks in this article. Mark R. Hake, InvestorPlace. EVBox Group to Gain Access to Growth Capital to Fuel Global Expansion EVBox Group's Leadership Position in European EV Charging Solutions is Aligned with TPG Pace Beneficial Finance's Commitment Therefore, the average between the two numbers is $49.32 per share. This article will explain how I came up with these calculations. It shows that the pro forma market cap is now $4.54 billion and the enterprise value is $3.94 billion. EVBox is a subsidiary of Engie New Business, which in turn is a subsidiary of Engie SA. Since TPGY stock (EVB stock) was at $29.49 per share as of Feb. 12, we have to adjust some of the numbers. For one, any investor would want to have a hurdle rate or opportunity-cost rate. The listing is expected to take place towards the end of the first quarter of 2021. All rights reserved. On Dec. 10, 2020, a SPAC (special purpose acquisition company) called TPG Pace Beneficial Corp. (NYSE:TPGY) announced a reverse merger with a European charging company EVBox Group. Fortunately, most of the valuation analysis work is done by EVBox both in its Dec. 10 press release and in its accompanying slide presentation. That represents a gain of 41% over the Feb. 12 price. TPG SPAC Merger with EVBox Is Deeply Undervalued. EBVBox is Europe’s largest electric vehicle charging company, just like ChargePoint is the largest in the U.S. Based on a comparison with ChargePoint, I estimate that TPGY/EVB stock is worth $7.6 billion or $49.32 per share fully diluted. In 2021, it forecasts 71% growth over 2020, but in 2022 that rises to 87.5% growth. This represents a potential gain of 67% from Feb. 12. I suspect that once the merger goes through the market will revalue TPGY stock (EVB stock then) about 67% higher. EVBox is going public via a merger with special purpose acquisition company (SPAC) TPG Pace (NYSE:TPGY) and TPGY stock is soaring as a result. The company is focused on sponsoring the public listing of a company that combines attractive business fundamentals with, or with the potential for strong … The best and simplest way to value EVBox is to compare it to ChargePoint, using Switchback Energy (NYSE:SBE) presentation numbers. By Josh Beckerman . Click here for instructions on how to enable JavaScript in your browser. That represents a gain of 41% over the Feb. 12 price. But we cannot use that ratio. EVBox, a charging-technology firm, will merge with a TPG SPAC in a deal with a pro-forma equity value of nearly $1.4 billion. EVBox is going public via a merger with SPAC TPG Pace (TPGY) set to close in Q1 2021 and TPGY stock is soaring as a result.More From InvestorPlace … EVBox's parent company, ENGIE New Business, is based in France and will retain 40% ownership in the post-merger entity. The adjusted target value, based on a 27.6 enterprise value-to-sales multiple from ChargePoint’s adjusted enterprise value-to-sales ratio, is $56.92 when applied to TPGY stock. Therefore, TPGY stock is worth somewhere between a gain of 41% and a gain of 93%, or an average of $49.32 per share. In fact, on page 47 of the TPGY slide presentation, EVBox compares its growth with ChargePoint. It is simply too far out in the future. That represents a gain of 93% from the recent TPGY price. In 2021, it forecasts 71% growth over 2020, but in 2022 that rises to 87.5% growth. This compares with its existing pro forma market value of $3.944 billion. Updated 45 minutes ago Electric car charger manufacturer EVBox is ready to advance to the next stage. Required fields are marked *. They grow on average 74.5% annually over the next three years. Following the transaction, EVBox expects… Your email address will not be published. On that day, TPG Pace Beneficial Finance announced that it would merge with EVBox. You can see this calculation in the table I have put together at the right. Your email address will not be published. This represents a potential gain of 67% from Feb. 12. However, the unadjusted target price, based on SBE stock having an 18.2 times enterprise value-to-sales ratio, is $41.71. EVBox Group to Gain Access to Growth Capital to Fuel Global Expansion. That is incredible. In addition, we use a 15% discount rate to adjust for risk over the next three years. We can use these figures to find its enterprise value-to-sales ratios as well as its target market cap and price. Connect with friends faster than ever with the new Facebook app. Next, I apply these ratios to EVBox (TPGY stock). Stocks. InvestorPlace - Stock Market News, Stock … It also raises the 2023 enterprise value-to-sales ratio to 13.2 times. This compares with its existing pro forma market value of $3.944 billion. The combined company will be renamed EVBox Group. TPG-Backed Blank-Check Company to Merge With EVBox; Engie to Retain Stake Over 40% Provided by Dow Jones. For example, on page 45 of the slide presentation, we can use the number of shares listed on a pro forma basis once the merger closes to set the pro forma market capitalization. On Dec. 10, 2020, a SPAC (special purpose acquisition company) called TPG Pace Beneficial Corp. (NYSE:TPGY) announced a reverse merger with a European charging company EVBox Group. The business combination values EVBox at an implied $969 million enterprise value, and a total pro-forma equity value of approximately $1.4 billion. I suspect that once the merger goes through the market will revalue TPGY stock (EVB stock then) about 67% higher. But ChargePoint’s CAGR is only 60% over that period. On the date of publication, Mark R. Hake does not hold a long or short position in any of the stocks in this article. TPG Pace Beneficial Finance filed an investor presentation on its proposed merger with EVBox, a subsidiary of ENGIE New Business. transaction closing, and assuming no redemptions by TPG Pace stockholders, EVBox is expected to have approximately $425 million in cash, and a total pro-forma equity value of approximately $1.394 billion. Engie will retain a more than 40 percent ownership stake in the electric vehicle technology company. Posted December 21, 2020 by Charles Morris & filed under Newswire, The Infrastructure. Show full articles without "Continue Reading" button for {0} hours. By using this site, you agree to the Terms of Use and Privacy Policy. For example, the table at the right shows my analysis of ChargePoint’s enterprise value-to-sales ratios, including on an adjusted basis. These go out to 2o23. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. Latest stock market news and investing guides. On page 43 of TPG’s slide presentation, the company presents EVBox’s revenue and adjusted EBITDA forecast. Source: NESPIX / Shutterstock.com This quick timing is only possible because TPG is a so-called special-purchase acquisition company or SPAC. However, the unadjusted target price, based on SBE stock having an 18.2 times enterprise value-to-sales ratio, is $41.71. But ChargePoint’s CAGR is only 60% over that period. But we cannot use that ratio. Looking closely at these numbers it is clear that EVBox Group expects its revenue to essentially go through the roof. You can also see in the table that by 2023 the enterprise revenue-to-sales multiple falls from 27 times in 2021 to just 8 times in 2023. The next table on the right shows these adjusted revenue numbers. You can see this in the table I put together at the right. The best and simplest way to value EVBox is to compare it to ChargePoint, using Switchback Energy (NYSE:SBE) presentation numbers. We can use this when comparing the EVBox average enterprise value-to-sales ratios to ChargePoint’s multiples. Feb. 18, 2021, 08:37 PM. Its growth rate to 2022 is expected to be 79% compound annual average growth (CAGR). It shows that by 2023 revenue will be $450 million. The adjusted target value, based on a 27.6 enterprise value-to-sales multiple from ChargePoint’s adjusted enterprise value-to-sales ratio, is $56.92 when applied to TPGY stock. CNBC’s Jim Cramer on Monday broke down three companies that fell into the charging-station category, concluding that the one investors should be most interested in is EVBox. Its growth rate to 2022 is expected to be 79% compound annual average growth (CAGR). 10 mins EVBox Merger With TPG Pace Brings Potential For Electrifying Long-Term Growth Seeking Alpha . Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. Since TPG Beneficial Finance (NYSE: TPGY) announced its merger with European charging station developer EVbox, in December, TPGY stock … EVBox’s current owner, the French multinational utility … Fortunately, most of the valuation analysis work is done by EVBox both in its Dec. 10 press release and in its accompanying slide presentation. Its common shares and warrants are expected to be listed on the New York Stock Exchange (the “NYSE”) under the ticker symbols “EVB” and … These go out to 2o23. Since TPGY stock (EVB stock) was at $29.49 per share as of Feb. 12, we have to adjust some of the numbers. On Dec. 10, 2020, a SPAC (special purpose acquisition company) called TPG Pace Beneficial Corp. (NYSE: TPGY) announced a reverse merger with a European charging company EVBox Group. Now what. In addition, we use a 15% discount rate to adjust for risk over the next three years. Engie SA … TPGY stock (the new symbol will be EVB after the merger) is worth at least 67% more at $49.32 when the SPAC merger closes. EBVBox is Europe’s largest electric vehicle charging company, just like ChargePoint is the largest in the U.S. Based on a comparison with ChargePoint, I estimate that TPGY/EVB stock is worth $7.6 billion or $49.32 per share fully diluted. That represents a gain of 93% from the recent TPGY price. Use of these names, logos, and brands does not imply endorsement unless specified. TPG Pace Beneficial Finance is a special purpose acquisition company formed by TPG for the purpose of entering into a merger, stock purchase or similar business combination with one or more businesses. You can see this in the table I put together at the right. TPGY is merging with EV charging station company, EVBox. Source: NESPIX / Shutterstock.com TPG Pace Beneficial Finance announced it has entered into a definitive agreement with ENGIE New Business to acquire its subsidiary EVBox for a combination of cash and equity. This works out to an annual average growth rate of 74.5%. Those warrants will likely be called within several months after the merger and EVBox will receive the proceeds. We can use the total cash raised from the deal, minus the debt repayments and deal costs, to determine the pro forma enterprise value. Currently you have JavaScript disabled. Why Investors Should Let Go of GEVO Stock, 3 Blue-Chip Stocks to Buy for Maximum Dividend Safety. The average annual growth rate falls to 52%. You can see the results of applying the ChargePoint EV-to-sales metrics to TPBY stock (EVBox) in the table on the right. All statements, other than statements of present or historical fact included herein, regarding the proposed merger of TPG Pace into New TPG Pace Beneficial Finance Corp., an exempted company incorporated in the Cayman Islands with limited liability under company number 368739 (“New SPAC”) and the proposed acquisition of the common shares of EV Charged by Edison … This works out to an annual average growth rate of 74.5%. It is simply too far out in the future. 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TPG Pace raised capital through an initial public offering for the purpose of entering into a merger, stock purchase or similar business combination with one or more businesses. Those warrants will likely be called within several months after the merger and EVBox will receive the proceeds. EVBox, a provider of charging hardware and software, has announced plans to go public through a merger with a company called TPG Pace Beneficial Finance (NYSE: TPGY). Next, I apply these ratios to EVBox (TPGY stock). Nach der Transaktion erwartet EVBox mehr als 425 Millionen US-Dollar an Barmitteln in seiner Bilanz, unterstützt von einer garantierten PIPE von 225 Millionen US-Dollar, 100 Millionen US-Dollar von TPG Pace’s Forward Purchase Agreements und 350 Millionen US-Dollar an Barmitteln aus dem Treuhandkonto von TPG Pace. Based in France, EVBox is a global provider of smart charging solutions for… You can see the results of applying the ChargePoint EV-to-sales metrics to TPBY stock (EVBox) in the table on the right. This covers the otherwise use of his investment money in EVBox waiting three years in the future. Click here for instructions on how to enable JavaScript in your browser. On Dec. 10, 2020, a SPAC (special purpose acquisition company) called TPG Pace Beneficial Corp. (NYSE:TPGY) announced a reverse merger with a European charging company EVBox Group. This covers the otherwise use of his investment money in EVBox waiting three years in the future. TPGY stock (the new symbol will be EVB after the merger) is worth at least 67% more at $49.32 when the SPAC merger closes. TPG-sponsored SPAC agrees to acquire EVBox at $1.4bn value. On page 43 of TPG’s slide presentation, the company presents EVBox’s revenue and adjusted EBITDA forecast. This implies that EVBox should have a slightly higher premium. These companies are already listed on the … EVBox wird von der Partnerschaft mit TPG … Dec 11, 2020 12:03 AM UTC . In fact, on page 47 of the TPGY slide presentation, EVBox compares its growth with ChargePoint. We can use this when comparing the EVBox average enterprise value-to-sales ratios to ChargePoint’s multiples. The average annual growth rate falls to 52%. It shows that the pro forma market cap is now $4.54 billion and the enterprise value is $3.94 billion.