• Calculate Teuer's multiples. Given the value of Teuer derived using DCF (for the Teuer (A) case), calculate the sales, net income, and cash flow from assets multiples for Teuer at the end of 2012. Why do the three ratios differ from each other? Calculate the three multiples at the end of 2018. If they are expected to change between 2012 and 2018, explain why. Consider what each ratio is measuring and thus what assumptions you are making about comparability when you use each ratio.
• Comparable firms. When you value a firm using a multiples approach, you only use firms that are comparable to Teuer (the target firm). On what dimensions should the firms be comparable to the target firm? Each of the nine possible firms is in the same industry as Teuer. Based on the information in the case, pick a set of firms that you consider to be comparable to Teuer in the important dimensions. You will need to be explicit about which dimensions are important.
• Value Teuer using a multiples approach. Based on the set of firms that you consider comparable, calculate the relevant multiple and value Teuer (price per share). If your multiples valuation differs from your DCF valuation, explain why.