Question
A company had total revenues of $67 million, operating margin of 25.3%, and depreciation and amortization expense of $22 million over the trailing twelve months.
A company had total revenues of $67 million, operating margin of 25.3%, and depreciation and amortization expense of $22 million over the trailing twelve months. The company currently has $266 million in total debt and $64 million in cash and cash equivalents. The company's shares are currently trading at $32.8 per share and there are 15 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.
Consider a company that is forecasted to generate free cash flows of $24 million next year and $26 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 7.7%. The company has $67 million in debt, $10 million of cash, and 27 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 15, how much is each share worth? Round to one decimal place.
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