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Madison Makeup reported the following on its most recent financial statements (in $ millions, except EPS). Miscellaneous financial information Miscellaneous financial information Current portion of

Madison Makeup reported the following on its most recent financial statements (in $ millions, except EPS).

Miscellaneous financial information

Miscellaneous financial information

Current portion of long-term debt: $6,05

Note: average peer EV/EBITDA: 17.18

EBITDA : $20,844

Note: the effective tax rate: 21.21%

Earnings per share: $3.57

Note: median peer EV/EBITDA: 19.32

EBIT: $7,693

Long-term debt: $43,889

Note: median peer EV/EBIT: 21.63

Note: number of shares (in millions): 2,695

Goodwill: $6,589

Note: average peer EV/EBIT: 24.89

Total Liabilities: $91,296

Note: average peer P/E: 20.54

Total assets: $117,042

Note: median peer P/E: 23.26

Note: average peer P/B: 9.76

Note: median peer P/B: 10.25

Short-term debt: $20,780

Cash: $8,655

QUESTION SOLVE:

i.) What is the share price of Madison Makeup if the relevant peer multiple is the average EV/EBITDA for its peers?

ii.) What is the share price of Madison Makeup if the relevant peer multiple is the median P/B for its peers?

iii.)What is the share price of Madison Makeup if the firm is considered better managed than its peers and the appropriate pricing multiple for the firm is the average EV/EBIT for the peer group, adjusted by 0.56 in the relevant direction.

iv.) What is the share price of Madison Makeup if the firm is considered slower growing than its peers and the appropriate pricing multiple for the firm is the median P/E for the peer group, adjusted by 1.11 in the relevant direction.

v.) What is the share price of Madison Makeup if the firm is considered more risky than its peers and the appropriate pricing multiple for the firm is the average P/B for the peer group, adjusted by 2.18 in the relevant direction.

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