In 2016, 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 price-to-EBITDA and price-to-sales because Zooms net income was negative. The analysts at Sequoia Capital have identified as a benchmark 20 listed companies in Software and Communications Technology industries. Table below summarizes the information collected:

	Average across 20 comparable firms in software & communication technology
Price to EBITDA per share	25.0
Price to sales per share	6.5

Assume that Zooms EBITDA and sales, respectively, were $36 million and $120 million; and the number of shares was 20 million shares.

Question 1

Compute Zooms EBITDA per share and sales per share.

Answer (show the steps/calculation toward your results):

Question 2

Recall that the analysts at Sequoia Capital were asked to estimate the price per share of Zooms stock using price-to-EBITDA multiple and price-to-sales 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. In case you are unsure about your results in part (a), EBITDA per share = $3 and Sales per share = $10

Answer (show the steps/calculation toward your results):