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Compared to the value estimated from APV method, which method would you prefer to use? Briefly explain why. Dollar General LBO Valuation (Using Multiples Approach)

Compared to the value estimated from APV method, which method would you prefer to use? Briefly explain why.

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Dollar General LBO Valuation (Using Multiples Approach) Market Multiples (All in $million except multiples data) Net Company 99 Cent Only Stores BigLots Dollar Tree Family Dollar Market Value Equity (MV) $1,027.10 $3,750.15 $2,184.26 $3,645.17 Book Value Equity (BV) $519.23 $1,130 $1,167.70 $1,208.39 MV/BV 1.98 3.32 1.87 3.02 EBITDA $ 39.24 $ 269.09 $ 469.80 $ 451.94 MV/EBITDA 26.17 13.94 4.65 8.07 Income (NI) $ 9.76 $ 124.05 $ 192.00 $ 195.11 MV/NI 105.24 30.23 11.38 18.68 EPS $ $ $ $ 0.14 1.12 1.86 1.26 Dollar General Book Value EBITDA Net Inome Actual (2007) 1745 449 138 Output Select two market value based ratios: Dollar General LBO Valuation (Using Multiples Approach) Market Multiples (All in $million except multiples data) Net Company 99 Cent Only Stores BigLots Dollar Tree Family Dollar Market Value Equity (MV) $1,027.10 $3,750.15 $2,184.26 $3,645.17 Book Value Equity (BV) $519.23 $1,130 $1,167.70 $1,208.39 MV/BV 1.98 3.32 1.87 3.02 EBITDA $ 39.24 $ 269.09 $ 469.80 $ 451.94 MV/EBITDA 26.17 13.94 4.65 8.07 Income (NI) $ 9.76 $ 124.05 $ 192.00 $ 195.11 MV/NI 105.24 30.23 11.38 18.68 EPS $ $ $ $ 0.14 1.12 1.86 1.26 Dollar General Book Value EBITDA Net Inome Actual (2007) 1745 449 138 Output Select two market value based ratios

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