Question
Consider a company which had revenues of $49 million over the last twelve months. (a) Depreciation and amortization expenses were $7 million. (b) Operating margin
Consider a company which had revenues of $49 million over the last twelve months.
(a) Depreciation and amortization expenses were $7 million.
(b) Operating margin was 37.2%. It has $29 million of debt, $8 million in cash, and 7 million shares outstanding.
(c) Comparable companies are trading at an average trailing EV/EBITDA multiple of 11.
(d) How much is each share worth using relative valuation? Round to one decimal place.
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Answer Determining Share Price using Relative Valuation EVEBITDA Multiple Heres how to find the share price using relative valuation 1 Calculate EBITD...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
