Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

How to make a comparision multiple valuation table between the following two companies - 1) Air New Zealand 2)Qantas. The data can be taken from

How to make a comparision multiple valuation table between the following two companies -

1) Air New Zealand

2)Qantas.

The data can be taken from Yahoo

Example below

image text in transcribed

Comparison companies - Multiple Analysis Manuka Health is of similar size to Comvita and therefore a suitable comparable company. The effectiveness of Comvita-Manuka Health comparison has been reduced through Manuka being a private company and through Manuka Health 2018 financials having not yet been released. As Manuka Health is a private company, no meaningful market cap figure could be established, impacting our ability to calculate an EV value for relevant years. We have assumed an EV of 217 million, as suggested by the rumoured sell offer of the company. We made 2018 estimates for Manuka Health based on 2016/2017 total liabilities, cash and equivalents, EBITDA and EBIT. Capilano Health is very similar to Comvita with regards to its products produced, making for effective comparison. Other comparison companies have been chosen because they all produce products based on the primary production and export to similar foreign markets. EV/EBITDA EV/EBIT Price/Earnings Net Debt/EBITDA FY16A FY17A FY18A FY19F FY16A FY17A FY18A FY19F FY16A FY17A FY18A FY19F FY16A FY17A FY18A FY19F Comvita 16.8 55.4 28.3 17.7 20.6 331.9 41.9 21.3 25.2 24.4 32.3 35.2 3.2 14.9 9.0 2.4 Manuka Health 13.2 17.3 14.9 13.1 14.5 21.3 17.2 17.6 n/a n/a n/a n/a 2.9 3.0 2.3 2.0 Capilano Honey 12.8 11.6 11.4 11.5 13.3 12.9 12.7 12.7 19.1 14.5 16.1 17.4 2.1 2.1 2.0 0.5 A2 Milk 23.5 20.3 28.8 22.6 24.1 20.5 28.9 22.9 41.5 31.6 42.4 33.3 0.1 -0.1 1.2 1.1 Blackmores 15.5 17.8 21.4 21.1 22.6 19.3 23.2 22.8 22.6 28.0 35.1 33.0 1.4 1.9 2.0 0.4 Sanford 11.0 12.3 9.5 8.7 13.8 16.2 12.1 11.0 17.3 19.2 15.4 13.7 3.1 3.1 2.2 1.5 Median 14.3 17.5 14.9 15.4 17.6 19.9 17.2 19.5 22.6 24.4 24.2 33.0 2.5 2.6 2.0 1.3 Mean 15.5 22.4 19.0 15.8 18.2 70.3 22.7 18.0 25.1 23.5 28.2 26.5 2.1 4.1 3.1 1.3 Source: Company data, Waikato Analysis

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

9781285586618

Students also viewed these Finance questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago