Ametek, Inc. is a billion dollar manufacturer of electronic instruments and motors headquartered in Paoli, Pennsylvania. Use the following information on Ametek and five other similar companies to value Ametek, Inc. on December 31, 2001. Ametek, Inc., 2001 ($ millions) Ametek Net income Number of common shares (millions) $ 66.1 32.82 Earnings before interest and tax $112.3 Tax rate 22% Book value of equity $335.1 Book value interest-bearing debt $470.8 American Emerson Franklin AO Woodward Power Electric Electric Smith Governor Conv. Comparison of Ametek with Comparable Companies: Growth Rates, Financial Risks, Size, Returns 5-year growth rate in sales (%)) 3.3 6.8 1.4 8.1 10.2 15.2 5-year growth rate in eps (%) 5.1 1.3 9.2 (5.4) 19.6 3.4 Interest coverage ratio (x) 4.8 8.0 38.0 3.0 12.3 * Total liabilities to assets (x)) 0.7 0.6 0.4 0.7 0.5 0.1 Total assets ($ millions) 1,029 15,046 196 1,294 585 1,421 Indicators of Value Price/earnings [x] MV firm/EBIT(1-Tax ratel (x) MV equity/BV equity (x) 23.2 16.1 32.0 12.4 25.0 23.3 16.2 34.7 13.2 25.0 3.9 3.5 1.0 2.1 2.3 MV firm/BV firm (x) 2.7 3.3 1.0 1.8 2.3 Price/sales (x) 1.5 1.4 0.4 1.0 2.0 MV firm/sales (x) 1.9 1.4 0.8 1.1 2.0 "American Power Conversion hos no interest-bearing dele outstanding MV Market value; BV Book value. Market value is estimated as book value of interest-hearing debe + market value of equity. Earnings are fiscal year canings AppendixLO1