Question
I need some help with a presentation I have to do for my finance class. I have been given the following market multiples for three
I need some help with a presentation I have to do for my finance class. I have been given the following market multiples for three companies (each are customer service companies) and have to comment on the market value for Company A, using the multiples for its two competitors. No other information is provided (I.e industry or sector ratios, or any historical info) so we are expected to comment only using the following info:
Company A
P/E ratio 12.35
Price to book ratio 4.05
Price to cash flow ratio 7.92
EV-EBITDA 5.12
EV-sales ratio 0.82
Company B
P/E 17.93
Price to book 2.79
Price to cash flow 3.96
EV-EBITDA 5.19
EV to sales 0.91
Company C
P/E 11.04
Price to book 2.51
Price to cash flow 5.36
EV-EBITDA 4.76
EV to sales 1.01
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