A company has three major business segments: Aviation, Defense, and Engine. The respective EBITDA are: $ 10,000 MM for Aviation and $7,500 MM for Energy. An analyst working in Bank of America Merrill Lynch is now asked to value the company using the sum-of-the-parts analysis method. To compute EV/EBITDA multiple, the analyst determines the respective pools of comparable firms for each segment. The analyst also determines to use the weighted (by market share) average values.

1) Aviation

Aviation Companies	Forward EV/EBITDA	Weight on Revenue
Firm 1	5.78	28%
Firm 2	4.89	37%
Firm 3	8.47	35%

2) Defense

Energy Companies	Forward EV/EBITDA	Market Share
Firm 1	11.23	25%
Firm 2	10.19	21%
Firm 3	7.13	18%
Firm 4	9.15	36%

3) Engine

Energy Companies	Forward EV/EBITDA	Market Share
Firm 1	3.79	27%
Firm 2	4.58	13%
Firm 3	5.95	21%
Firm 4	7.76	18%
Firm 5	4.88	21%

1. What are the (revenue) weighted average multiples and enterprise values for each segment? What is the total enterprise value?. Fill in the blanks. (Note: Round to the nearest tenth. e.g. 2.453 => 2.5)

Segments	EBITDA ($ MM)	Weighted Average Multiple	Enterprise Value (EV)
Aviation	27,020	6.4	172,717.2
Defense	9,519
Aviation	11,777

2. What are the fundamental market value and stock price per share of this company? Fill in the blanks (Note: Round to the nearest tenth. e.g. 2.453 => 2.5)

Total Enterprise Values ($ MM)
Net Debt ($ MM)	180,224.0
Option Proceeds ($ MM)	6,603.7
Market Value ($ MM)
Number of Shares Outstanding (Unit: MM)	2,338
Price per Share

3. The stock is now trading at $ 70.25 in the market. Based on the above, the stock is _____ in the market. (Note: answer either "undervalued" or "overvalued.")