BigCo$$s Chief Financial Officer is trying to determine a fair value for PrivCo, a non$-$publicly traded firm that BigCo$$s is considering acquiring. Several of PrivCo$$s competitors, Ion International, and Zenon are publicly traded. Ion and Zenon have price$-$to$-$earnings ratios of $20$ and $15,$ respectively. Moreover, Ion and Zenon$$s shares are trading at a multiple of earnings before interest, taxes, depreciation, and amortization $($EBITDA$)$ of $10$ and $8,$ respectively. BigCo estimates that next year PrivCo will achieve net income and EBITDA of $$4$ million and $$8$ million, respectively. To gain a controlling interest in the firm, BigCo expects to have to pay at least a $30\%$ premium to the firm$$s market value. What should BigCo expect to pay for PrivCo?

Based on price$-$to$-$earnings ratios?

Based on EBITDA?