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
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 PIE 19 18 20 17 EJH Enterprises has EPS of S1.80, EBITDA of $295 million, $30 million in cash, 544 million in debt, and 104 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be Lowest price within both ranges, the P/E and EVEBITDA ranges, is $. (Round to two decimal places.) Highest price within both ranges, the P/E and the EVEBITDA rangos, is $ (Round to two decimal places.) After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 4 EVEBITDA 12 19 Comp 2 11 18 Comp 3 12.5 20 10 17 P/E EJH Enterprises has EPS of $2.00, EBITDA of S290 million, $29 million in cash, $41 million in debt, and 101 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be Lowest price within both ranges, the P/E and EVEBITDA ranges, is $. (Round to two decimal places.) Highest price within both ranges, the PE and the EV/EBITDA ranges, is $(Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Entrepreneurial Finance

Authors: Denise Lee

1st Edition

1948426129, 9781948426121

More Books

Students also viewed these Finance questions