Ketema, Inc. is a manufacturer of electronic instruments. Use the following information on Ketema and five other similar companies to value Ketema, Inc. on December 31, 2017.

Ketema, Inc., 2017 ($ millions)
Net income	$	66.10
Number of common share (millions)		32.82
Earnings before interest and tax	$	112.30
Tax rate		22	%
Book value of equity	$	335.10
Book value of interest-bearing debt	$	470.80

Comparison of Ketema, Inc. with Comparable Companies
	Ketema			Aloha Electric			Butler Electric			AJ Smith			Baker Modesto			National Power
Growth Rates, Financial Risks, Size, Returns
5-year growth rate in sales (%)		3.3			6.8			1.4			8.1			10.2			15.2
5-year growth rate in eps (%)		5.1			1.3			9.2			(5.4	)		19.6			3.4
Interest coverage ratio (X)		4.8			8.0			38.0			3.0			12.3			*
Total liabilities to assets (X)		0.7			0.6			0.4			0.7			0.5			0.1
Total assets ($ millions)		1,029			15,046			196			1,294			585			1,421
Indicators of Value
Price/earnings (X)					23.2			16.1			32.0			12.4			25.0
MV firm/EBIT(1Tax rate) (X)					23.3			16.2			34.7			13.2			25.0
MV equity/BV equity (X)					3.9			3.5			1.0			2.1			2.3
MV firm/BV firm (X)					2.7			3.3			1.0			1.8			2.3
Price/sales (X)					1.5			1.4			0.4			1.0			2.0
MV firm/sales (X)					1.9			1.4			0.8			1.1			2.0

*National Power has no interest-bearing debt outstanding.

MV = Market value; BV = Book value. MV firm is estimated as book value of interest-bearing debt + market value of equity.