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A privately held firm called RoverX is considering an IPO and has hired you to estimate an approximate price per share of its equity. The
A privately held firm called RoverX is considering an IPO and has hired you to estimate an approximate price per share of its equity. The firms sales are $ million, EBITDA is $ million and net income is $ million. It currently has million shares outstanding. The firm has $ million in debt and cash balance of $ million.
The following financial data for two publicly traded comparable firms are available.
All data in millions
Firm Market Capitalization Enterprise Value Sales EBITDA Net Income
A $ $ $ $ $
B $ $ $ $ $
What is the estimated price per share of RoverX using:
a The PE multiple
b The Enterprise valuetoEBITDA multiple
c The PricetoSales multiple
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