Question
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 2 Comp 3 Comp
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios:
Comp 1 | Comp 2 | Comp 3 | Comp 4 | |
EV/EBITDA | 12 | 11 | 12.5 | 10 |
P/E | 19 | 18 | 20 | 17 |
EJH Enterprises has EPS of $2.00, EBITDA of $300 million, $28 million in cash, $45 million in debt, and 100 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.)
Thank you in advance.
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