Make your money go further for just 25p per day

As the new football season kicks off and Arsenal is snapped up, Tottenham Hotspur looks a bargain!

10/08/2018

Tottenham Hotspur football players - Arsenal and Spurs shares
It’s not too late to pick up shares in Tottenham Hotspur football club for what looks like a bargain basement price, at least relative to their overpriced (and underperforming) north London neighbours! Our Blog here highlights the merits of the iconic Spurs and how to buy shares.

Stan Kroenke’s £550m purchase of a minority stake in NEX listed Arsenal Holdings PLC from Russian billionaire Alisher Usmanov results in an implied Enterprise Value for Arsenal of £1.8bn, or approx. 12 times last year’s adjusted EBITDA of £151m (that’s our calculation of adjusted EBITDA).

To put that into financial perspective, US listed Manchester United has a current market capitalisation of US$3.5bn, and an Enterprise Value (‘EV’) of approx. US$3.8bn – the EV includes the debt. For the 12 months ending 30 June 2017, ‘United’ generated adjusted EBITDA of US$200m, resulting in an EV/EBITDA ratio of approx. 19x – an even richer multiple than Arsenal!

Those interested in a cheaper alternative, and a football team in the ascendancy, could look no further than Tottenham Hotspur.

Tottenham’s excellent manager, Mauricio Pochettino, steered the club to a 3rd place finish in the Premier League last season and 2nd place the season before. The club has also recently enjoyed strong cup runs (a…

Sign up and read the full article

Register to continue reading this article.

Get FREE access now

Already a member? Login

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

SUBSCRIBE NOW

More from the News & Insights

Victoria highlights the art of creative financial reporting

15/07/2019 · Victoria

The week at a glance: 8 July – taxing times for tech

12/07/2019 · Alphabet · Amazon · Apple · Facebook · Marks & Spencer · Ocado · Thomas Cook

Should AIM investors fear IHT changes?