Answered step by step
Verified Expert Solution
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
$295
million,
$30
million in cash,
$44
million in debt, and
105
million shares outstanding. What range of prices is consistent with both sets of multiples?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started