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Additional Question Multiples Valuation ( Sample Exam Question ) The table below shows the stock prices and multiples for several firms in the newspaper publishingEnterprisEnterpriseCapitalizationValueEnterprise

Additional Question Multiples Valuation ( Sample Exam Question )The table below shows the stock prices and multiples for several firms in the newspaper publishingEnterprisEnterpriseCapitalizationValueEnterprise( sValue / Sales EBITDAGannet635001637360.735.04ew Yorkltimes347218.09264721mclatchy6753061976168Media1192039eneralEnterprises17246550.82a . Compute the averages across peer firm for all ratios in the tableb . Compute the maximum and minimum percentage deviations from the averageAnother newspaper publishing firm ( not shown ) had sales of $ 600 million , EBITDA of $ 84 milionexcessof $ 68 million , S18 million of debt , and 180 million shares outstandingC . Use the P / E ratio to estimate the target firms share price when the target firms forwardearnings are $ 0.41 per shareAs d . If the average enterprise value to sales for comparable businesses is used , what is yourst estimate of the firms fair share price ? What would be a reasonable range for the targfirm's share price ?e . Which of the ratios in the table would most likely be the most reliable in determining thestock price of a comparable firm ?
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