10. valuation based on comparable firms.

The general distribtuion company GDC is a privatelty held company in the whole sale food distribution. you collected data on a sample of the five listed companies in the same sector and similar to GDC. Get five estimated of GDC equity value based on the following data.

he General Distribution Company (GDC) is a privately-held company in the wholesale food distribution sector. You collected data on a sample of five listed companies in the same sector and similar to GDC et five estimates of GDC's value based on the Average of the 5 comparable companies GDC $4,079,000,000 ales BITDA ash flow to equity holders et profits ook value of equity Market capitalization nterprise value et debt (debt less cash) 6,615,000,000 580,000,000 180,000,000 280,000,000 2,100,000,000 2,646,000,000 ,584,000,000 Not available $102,000,000 $168,000,000 $1,288,000,000 Unknown GDC General Distribution Company * EBITDA earnings before interest, tax, depreciation, and amortization olution: five estimates of GDC 's equity value Average multiples for the 5 Solution: estimated comparable companiesequity value for GDC Multiples rice-to-earnings multiple rice-to-book value multiple nterprise value-to-EBITDA multiple nterprise value (GDC) EBITDA (GDC) x Enterprise value-to-EBITDA multiple rice-to-cash flow multiple rice-to-sales multiple $0 $0 VE net profits (GDC] X multiple VE BV of equity (GDC) x multiple Enterprise value multiple enterprise value/ EBITDA Ve enterprise value (GDC) net debt (debt less cash) 6.18 $0V-Cash Flow (GDC) x multiple $0 -V.-Sales (GDC) x multiple