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7. You are using relative valuation model to evaluate Extreme Networks, a leader in providing software-driven networking solutions for various businesses. The following is the

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7. You are using relative valuation model to evaluate Extreme Networks, a leader in providing software-driven networking solutions for various businesses. The following is the most recent data for Extreme Networks: (6 points) Share price = $6.88 Share outstanding = 121.6 million Revenue = $1,011.4 million EBITDA - $43.6 Net debt = $288.1 million Peer group EV/EBITDA Cisco Juniper Network Arista Networks Netgear Inc. Mean 9.56 7.81 14.39 8.94 10.175 a) How much is the implied Extreme Network's share price based on EV/EBITDA multiple of the peer group? (4 points) b) Is Extreme Networks overvalued based on this analysis? (2 points)

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