Campbell Classics is considering selling to a private equity firm. You have identified a set of comparable publicly-traded companies to Campbell Classics and believe that the average price-to-earnings ratio or the median price-to-sales ratio for those firms can be used to value Campbell Classics. What is your estimated price for Campbell Classics using each multiple?

A. Earnings-based multiple

B. Sales-based multiple

Campbell Classics Income Statement 2020 Revenue 68,746,619 COGS (48,846,294) SG&A (9,551,463) Depr (1,704,278) EBIT 8,644,584 Interest (24,116) 8,620,468 Taxes (2,844,754) Net Income 5,775,714 Comparable Comp A Comp B Comp C Comp D Comp E Comp F Comp G Sales 49,265,106 84,977,080 103,057,083 4,383,587 31,091,337 14,174,614 113,878,870 Earnings 3,250,073 4,557,093 2,156,118 202,837 3,072,156 522,716 5,276,200 quity Market Cap 58,501,310 86,584,769 66,839,660 5,070,930 36,865,870 16,726,914 73,866,795