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0 2 13 After researching the competitors of Krusty burger, which is a private company you determine that most comparable firms have the following valuation

0 2 13 After researching the competitors of Krusty burger, which is a private company you determine that most comparable firms have the following valuation ratios (see the table below). Further research reveals that Krusty Burger's EBITDA is $ 576.1 million and its Earnings per Share (EPS) is $1.5. The company has $25 million in cash, $1,441 million in debt (market value), and 84 million shares outstanding. Burger McDonalds Arbys King Shelbyville burgers EV/ EBITDA 5.1 4.1 5.8 4.8 P/E 9 8.3 12.7 11.5 Estimate the stock price of Krusty Burger's using the average EV/EBITDA of its competitors. A. $33.09 B. $25.95 C. $27.17 D. $29.31 E. $10.11 Question 2 Use the information provided in the priveous question. Estimate the stock price of Krusty Burger's using the average P/E of its competitors. A. $15.56 B. $33.67 C. $23.59 D. $47.24 E. $18.25 F. $17.67

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