Question
1.You have been asked to value a private company using M ethod of Comparables . You believe you have found a comparable public company with
1.You have been asked to value a private company using Method of Comparables. You believe you have found a comparable public company with the following data (in millions):
Sales
$22,534.00
Earnings
$5,254.00
Book value
$13,422.32
Market value
$85,432.23
You were given the following data of the private company (in millions):
Sales
14,324.23
Earnings
8,323.11
Book value
10,333.10
Number of shares outstanding
23,000.00
Required:
what is the estimated price per share for the private company. Please use equal weighting of all the ratios to calculate the estimate price per share.
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Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
