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Company Dexter and Company Aqua both have the same enterprise value, EBITDA, and the same EBITDA growth expectations. However, Company B requires a higher level
Company Dexter and Company Aqua both have the same enterprise value, EBITDA, and the same EBITDA growth expectations. However, Company B requires a higher level of capital expenditures to achieve the same level of growth expectations. They are identical otherwise. Based on the above which is correct?
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Company Dexter is undervalued relative to Company Aqua
Company Aqua is undervalued relative to Company Dexter
Both companies have identical EV/EBIT multiples
Both of their valuations are appropriate
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