Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Mathematics For Economic Analysis

Authors: Knut Sydsaeter, Peter Hammond, Arne Strom

4th Edition

0273760688, 9780273760689

More Books

Students also viewed these Finance questions