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Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $40 Millions
Company B, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Company B had revenues of $40 Millions of USDs and earnings of $15 of Millions of USDs. Company B has filed a registration statement with the SEC for its IPO. If the industry average Price/Earnings ratio and Price/Revenues ratio for the recent fiscal year were 10 and 0.9 respectively. Estimate the IPO price for Company B using the Price/Revenues ratio and assuming that they will issue 22 Million shares."
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