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 $290 million, $30 million in cash, $43 million in debt, and 104 million shares outstanding. What range of prices is consistent with both sets of multiples?
Data Table:
EV/EBITDA:
comp 1 = 12
comp 2 = 11
comp 3 = 12.5
comp 4 = 10
P/E:
comp 1 = 19
comp 2 = 18
comp 3: 20
comp 4: 17
PART A: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $_____ (round to three decimal places)
PART B: highest price within both ranges, the P/E and the EV/EBITDA ranges, is $_____ (round to three decimal places)
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