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 $1.90, EBITDA of $290 million, $29 million in cash, $44 million in debt, and 105 million shares outstanding. What range of prices is consistent with both set of multiples?
The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is \$ (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.)
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