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After researching the competitors of R Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 2 Comp 3 Comp
After researching the competitors of R 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 |
R enterprises has EPS of $1.80, EBITDA of $295 million, $30 million in cash, $42 million in debt, and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?
The range of prices will be:
Highest price within both the P/E and EV/EBITDA ranges is $ ?
Lowest price within both the P/E and EV/EBITDA ranges is $ ?
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