Question
A company has revenues of $24 million and depreciation and amortization expenses of $9 million. Operating margin is 42%, net margin is 7% and gross
A company has revenues of $24 million and depreciation and amortization expenses of $9 million. Operating margin is 42%, net margin is 7% and gross margin is 57%. It has $19 million of debt, $6 million in cash, and 11 million shares outstanding. Comparable companies are trading at an average EV/EBITDA multiple of 12. How much are this company's shares worth using relative valuation?
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
