F4

You are sssigned to determine a fair value for AdvBioTech (ABT) Corporation. You determined that market multiples approach would be the best method to determine a fair value for this company. The total asset value of the company is 420 million dollars and the liability is 120 million dollars. The company has 30 million shares outstanding. ABT also generated 330-million-dollar-fevenue in the current year. In a typical year, company's return on equity is 15 percent. You gathered the following three muttiples from a close competitor of ABT. The P/E (Price-Eamings) ratio is 30 , Price to sales (P/S) is 2.5, and price to book (P/B) ratio is 5 . Based on information given about ABT and its competitor, determine the value of ABT using market muliples approach. Based on your analysis, what is the falr value of ABT using P/S multiple?