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 had EPS of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt and 100 million shares outstanding. EPS $2.00 EBITDA $300,000.00 Cash $30,000.00 Debt $40,000.00 Shares outstanding 100,000 What are the price estimates for EJH? Please fill out the table below using both valuation ratios in the four scenarios. Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA P/E
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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