Question
Consider a company with the following information: Sales: 300 million. EBITDA: 150 million. Profit after tax: 40 million. Value of Net debt: 400 million. Number
Consider a company with the following information: Sales: 300 million. EBITDA: 150 million. Profit after tax: 40 million. Value of Net debt: 400 million. Number of shares outstanding: 40 million.
A close competitor is trading at a Sales-multiple of 3 and a P/E ratio of 7.
- Based on the Sales-multiple of the close competitor, what is the estimated Enterprise value of this company?
- Based on the Sales-multiple of the close competitor, what is the estimated stock price of this company?
- Based on the P/E ratio of the close competitor, what is the estimated stock price of this company?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
