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

image text in transcribed

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

blur-text-image

Get Instant Access with AI-Powered 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

College Accounting Chapters 1-30

Authors: John Price, M. David Haddock, Michael Farina

15th edition

1259994975, 125999497X, 1259631117, 978-1259631115

Students also viewed these Finance questions