How does the $10.25 per share offer compare to Olo's recent trading range and peer valuation multiples? | OLO (Aug 08, 2025) | Candlesense
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How does the $10.25 per share offer compare to Olo's recent trading range and peer valuation multiples?

Short answer:

The news release you provided does not include Olo’s (NYSE: OLO) recent stock‑price range, nor does it give the valuation multiples (e.g., EV/EBITDA, EV/Revenue, P/E) of Olo’s peer group. Consequently, we cannot calculate a precise premium/discount or a direct multiple‑by‑multiple comparison based solely on the information you’ve posted.

How to evaluate the $10.25 per‑share offer in context

Below is a step‑by‑step guide you can use to assess how the $10.25 per‑share price stacks up against:

  1. Olo’s recent trading range (the market price the shares have been trading at in the recent weeks/months).
  2. Peer‑group valuation multiples (how similar companies are being valued relative to revenue, earnings, or cash flow).

1. Compare the offer price to Olo’s recent stock price

Step What to do Typical data sources
a. Get the recent price range Look up Olo’s daily closing price for the last 30‑60 days (or the period you consider most relevant). Note the high, low, and especially the closing price on the day before the announcement. Bloomberg, Reuters, Yahoo Finance, Google Finance, your brokerage platform.
b. Calculate the premium/discount [Offer price – Recent close] ÷ Recent close × 100 % (or use the midpoint of the recent range). This yields the % premium (or discount) the offer represents. Simple spreadsheet or calculator.
c. Interpret • Premium → The offer is above market price, implying a possible “fair” or “generous” offer.
• Discount → The offer is below market price, suggesting the market believes the company is worth less (or the buyer expects synergies).		 No additional data needed.

Example (illustrative only – do not treat as actual data)

– If Olo closed at $12.50 on the day before the announcement, the $10.25 price would be a ‑18 % discount.

– If Olo closed at $9.00, the offer would be a +14 % premium.

2. Compare to peer‑group valuation multiples

Step‑by‑step:

Step Action Typical peers & data sources
a. Identify comparable companies Choose companies that operate in the same segment (e.g., online food‑ordering & delivery platforms, restaurant technology SaaS). Typical peers: Grubhub (GRUB), DoorDash (DASH), Toast (TOST), Square (SQ) – now Block (SQ), and other restaurant‑management platforms (e.g., Culinary Holdings, NCR, Toast). Bloomberg “Peers” tab, S&P Capital IQ, FactSet, public filings.
b. Gather key multiples Commonly used metrics:
• EV/Revenue
• EV/EBITDA
• P/E (if profitable)
• EV/EBIT
Collect the median (or mean) for the peer group.		 Bloomberg, FactSet, S&P Global, YCharts.
c. Compute Olo’s multiples Use Olo’s most recent FY‑12M or FY‑2024 financials (Revenue, EBITDA, Net Income).
• EV = Market Cap + Net Debt (the $2 billion equity value + cash/debt adjustments).
• Revenue / EBITDA from the latest 10‑K/10‑Q.		 SEC filings (10‑K, 10‑Q), company investor relations site.
d. Compare • If Olo’s EV/Revenue is lower than peers, the $10.25 price may be a “discount” relative to the sector.
• If Olo’s EV/EBITDA or P/E are lower, the market may be undervaluing Olo relative to its peers, indicating a potentially favorable deal.		 Use a simple table to compare:
Example (illustrative):
  • Peer median EV/Revenue = 6.0×
  • Olo EV/Revenue at $10.25 = 4.5× (implies discount).
(Note: This is a hypothetical illustration; you must plug in the real numbers.)
e. Contextualize Discuss any qualitative differences (growth rates, profitability, cash‑flow generation, recent acquisitions, regulatory risk) that may justify a higher or lower multiple. Analyst reports, earnings calls, management commentary.

3. Putting it all together

Metric Interpretation
% premium/discount to recent price Determines if the offer is above or below current market sentiment.
Multiple vs. peers Shows whether the deal reflects a “market‑level” valuation or a discount/premium relative to peers.
Strategic considerations Synergies, cost savings, and strategic fit (e.g., Thoma Bravo’s plan for Olo) can justify paying a premium above market and peer multiples. Conversely, if the company’s growth prospects are weak, a discount may be justified.

What to do next

  1. Grab the latest market data for Olo (closing price, market cap, net debt).
  2. Pull the latest financial statements (Revenue, EBITDA, Net Income) and calculate Olo’s valuation multiples.
  3. Identify and extract peer data (EV/Revenue, EV/EBITDA, P/E) for a relevant peer group.
  4. Apply the calculations above to see whether the $10.25 per‑share price represents a discount, a fair price, or a premium relative both to Olo’s recent market price and to the valuation of comparable firms.

If you need help pulling the numbers or performing the calculations once you have the raw data, feel free to share the numbers, and I can walk you through the calculations step‑by‑step.

Other Questions About This News

Could the investigation lead to a delay or renegotiation of the Thoma Bravo transaction? How might the market price of Olo (NYSE: OLO) react to the announcement of a potential fiduciary breach? How might this development affect the valuation of Thoma Bravo's portfolio companies in the same industry? Is there a risk of a class‑action lawsuit from shareholders that could result in additional liabilities for Olo? What timeline is expected for the investigation, and how could that timeline intersect with the planned closing of the transaction? What is the potential impact on Olo's liquidity and cash flow if the transaction is contested or halted? What is the likelihood that the investigation will affect the $10.25 per share valuation for Olo shareholders? What precedent exists for similar investigations impacting merger or acquisition terms in the tech sector? Will the investigation increase legal and compliance costs for Olo, and how could that affect future earnings forecasts?