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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 firm's sales are $700 million, EBITDA is $275 million and net income is $170 million. It currently has 35 million shares outstanding. The firm has $800 million in debt and cash balance of $150 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 $3,195 $4,620 $900 $420 $355
B $1,342 $1,800 $550 $235 $122

What is the estimated price per share of RoverX using:

The P/E multiple

The Enterprise value-to-EBITDA multiple

The Price-to-Sales multiple

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