Question
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
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 $295 million, $28 million in cash, $41 million in debt, and 101 million shares outstanding. What range of prices is consistent with both sets of multiples?
The range of prices will be:
Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.)
Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.)
Comp 1 12 Comp 2 11 Comp 3 12.5 Comp 4 10 EV/EBITDA P/E 19 18 20 17Step by Step Solution
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