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For Questions 1 9 and 2 0 , use the information concerning Zoom Video Communications, Inc. ( Zoom ) provided below. In 2 0 1
For Questions and use the information concerning Zoom Video Communications, Inc. Zoom provided below.
In venture capital VC firm Sequoia Capital was valuing Zoom Video Communications, Inc. Zoom then a private company. The VC asked its analysts to use price multiple approaches based on PricetoEBITDA and PricetoRevenue because Zooms net income was negative. The analysts at Sequoia Capital have identified as a benchmark the listed companies in the Software and Communications Technology industries. Table below summarizes the information collected:
Average across comparable firms
in software & communication technology
Price to EBITDA per share
Price to Revenue per share
Assume that Zooms EBITDA and Revenue, respectively, were $ million and $ million; and the number of shares was million shares.
Question marks
Compute Zooms EBITDA per share and Revenue per share.
Answer show the stepscalculation toward your results:
Question marks
Recall that the analysts at Sequoia Capital were asked to estimate the price per share of Zooms stock using PricetoEBITDA multiple and PricetoRevenue multiple, respectively. Therefore, they had to compute and report two estimates for the price of Zoom stock. Find the two estimates the analysts would have reported. Lecture notes pp
In case you are unsure about your results in Question feel free to use the following inputs for Zoom:
EBITDA per share $ and Revenue per share $
Answer show the stepscalculation toward your results:
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