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An investor is valuing Company PQG which has the following expected key financial measures for year-end 2023 (Table 2): Continues on next page... Additionally, the
An investor is valuing Company PQG which has the following expected key financial measures for year-end 2023 (Table 2): "Continues on next page..." Additionally, the investor has the following information about a set of comparable listed companies that are similar both in terms of leverage and in terms of other fundamentals (Table 3): Round your computations to one decimal place (e.g., present 1.56 as 1.6). a. What is the 2023 enterprise value/EBITDA (EV/EBITDA) multiple of company PQG implied in the investor's expectations? Explain your answer. [5 marks] b. Consider only the information on the 2023 EV/EBITDA multiples of the set of comparable companies. What is the conclusion about the relative valuation of company PQG? Explain your answer. [10 marks] c. Consider the following statement: "An advantage of using the EV/EBITDA multiple in the context of a valuation exercise, is that it allows the analyst to compare companies with different capital structures". Do you agree? Explain your
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