Question
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: LOADING... . EJH Enterprises has EPS of
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios:
LOADING...
. EJH Enterprises has EPS of
$2.00,
EBITDA of
$300
million,
$27
million in cash,
$41
million in debt, and
101
million shares outstanding. What range of prices is consistent with both sets of multiples?
Question content area bottom
Part 1
The range of prices will be:
Lowest price within both ranges, the P/E and EV/EBITDA ranges, is
$enter your response here.
(Round to two decimal places.)Highest price within both ranges, the P/E and the EV/EBITDA ranges, is
$enter your response here.
Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17
(Round to two decimal places.)
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