Question
Assume we want to use a relative valuation approach to value a private firm. We have identified a similar public company that has a PE
Assume we want to use a relative valuation approach to value a private firm. We have identified a similar public company that has a PE ratio of 12.3 and a PEG ratio of 1.4. The private firm just reported $977,300 in earnings and analysts think these earnings will grow at a 6% rate going forward. Using the PEG ratio what is the estimated value of the private firm's value?
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Middle Market M And A Handbook For Advisors Investors And Business Owners
Authors: Kenneth H. Marks, Christian W. Blees, Michael R. Nall, Thomas A. Stewart
2nd Edition
1119828104, 978-1119828105
