Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a company which had revenues of $43 million over the last twelve months. Depreciation and amortization expenses were $5 million. Operating margin was 39.2%.

Consider a company which had revenues of $43 million over the last twelve months. Depreciation and amortization expenses were $5 million. Operating margin was 39.2%. It has $32 million of debt, $7 million in cash, and 9 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 23. How much is each share worth using relative valuation? Round to one decimal place.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sustainable Finance And Impact Investing

Authors: Alan S. Gutterman

1st Edition

1637423764, 978-1637423769

More Books

Students also viewed these Finance questions

Question

What advice would you provide to Jennifer?

Answered: 1 week ago

Question

What are the issues of concern for each of the affected parties?

Answered: 1 week ago