Ebix Shares Are Likely Headed to Zero: Gotham City Research

Goldman Sachs Group Inc (NYSE:GS) terminated an agreement to acquire Ebix Inc (NASDAQ:EBIX) last night, after the insurance software maker said it was told that federal prosecutors had opened an investigation. We believe Ebix is worth no more than $8 per share, and likely headed to $0.00 per share. See the attached note or visit our website for more details. Via Gotham City Research Ebix shares are worth no more than $8.00/share – Ebix Inc (NASDAQ:EBIX)’s valuation at 1x revenue is $5.45/share, valuation at 12x normalized earnings (at a 33% tax rate) is $9.72/share, and its tangible book value/share is negative. A…