Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company expects EPS to be $1 next year. The industry average P/E ratio is 7 and Enterprise multiple is 12.58. The EBITDA for the
A company expects EPS to be $1 next year. The industry average P/E ratio is 7 and Enterprise multiple is 12.58. The EBITDA for the company is $19.20 million. The firm has debt and preferred stock of $4 million and 10 million shares outstanding. What is an estimate of the firm value using the method of comparables for enterprise multiple? Express your answer in millions of dollars rounded to two decimal places (for example, if you get $12,540,000, input 12.54 as your answer)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started