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After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $1.90,
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $1.90, EBITDA of $300 million, $27 million in cash, $42 million in debt, and 102 million shares outstanding. What range of prices is consistent with both sets of multiples? The lowest price within both ranges, the P/E and the EV/EBITDA ranges, is $ nearest cent.) Data table (Round to the (Click on the following icon in order to copy its contents into a spreadsheet.) EV/EBITDA P/E Comp 1 Comp 2 12 11 Comp 3 12.5 19 18 20 Comp 4 10 17 To determine the range from the EV/EBITDA ratios, use the following formula: (EBITDA EV/EBITDA Ratio) + Cash - Debt Po = Shares Outstanding To determine the range from the P/E ratios, use the following formula: Po P/E Ratio EPS
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