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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 $290
million, $26
million in cash, $44
million in debt, and 105
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
$ nothing.
(Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is
$ nothing.
(Round to two decimal places.) Step by Step Solution
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