Multiples analysis: It is April 7, 2021, and your company is considering the possibility of purchasing the Chrysler automobile manufacturing business. Managers of Fiat Chrysler Automobiles N.V., the automobile manufacturer that owns Chrysler, have hinted that they might be interested in selling Chrysler. Since Chrysler does not have publicly traded shares of its own, you have decided to use Ford Motor Company as a comparable company to help you determine the market value of Chrysler.

This morning, Ford’s common stock was trading at $11.75 per share, and the company had 3.9 billion shares outstanding. You estimated that the market value of all of the company’s other outstanding securities (excluding the common stock but including special shares owned by the Ford family) is $35 billion and that its revenues from auto sales were $155 billion last year. Chrysler’s revenue in 2020 was

$50 billion. Based on the Enterprise value/revenue ratio, what is the total value of Chrysler that is implied by the Ford market values?