Question
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: (provided in images) EJH Enterprises has EPS
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: (provided in images)
EJH Enterprises has EPS of $1.80, EBITDA of $290 million, $27 million in cash, $40 million in debt, and 103 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 19 Comp 2 11 Comp 3 12.5 EV/EBITDA Comp 4 10 17 P/E 18 20Step by Step Solution
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