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Finacial help 6. Market multiple analysis The free cash flow (FCF) valuation model, the discounted cash flow model, and the corporate valuation model are the

Finacial help
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6. Market multiple analysis The free cash flow (FCF) valuation model, the discounted cash flow model, and the corporate valuation model are the most widely used valuation techniques. Often these valuations are accompanied by market multiple analysis, which is based on the fundamental concept that similar assets should have similar values. Blue Hamster Manufacturing Inc. is a privately owned firm with few investors. Investors forecast of next year's earnings per share (EPS) is $6.00. The average price-to-earnings (P/E) ratio for companies similar to Blue Hamster in the S&P 500 is 8. Blue Hamster's common stock has an estimated intrinsic value of 5 per share. (Note: Round your answer to two decimal places.) The market multiple analysis process is also used to calculate the value of a company, which can then be spread across the number of common shares outstanding to estimate a firm's per-share intrinsic value Suppose you have the following information for Crazy Crab Cosmetics Company: Crazy Crab Cosmetics Company Year 1 Year 2 EBITDA Total value of equity Total firm value $15,300 $153,000 $198.900 $18,300 $165,000 $264,000 In Year 2, Crazy Crab has an entity multiple of (Note: Round your answer to two decimal places)

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