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Market Data Financial Data Valuation Company Name Price ($/share) Shares (M) Market Cap Net Debt EV ($M) Sales ($M) EBITDA Earnings EV/Sales EV/EBITDA P/E ($M)
Market Data Financial Data Valuation Company Name Price ($/share) Shares (M) Market Cap Net Debt EV ($M) Sales ($M) EBITDA Earnings EV/Sales EV/EBITDA P/E ($M) ($M) ($M) ($M) ABCDE $9.45 100 945 125 1,070 268 76 47 4.0 14.1 20.1 $5.68 1,250 7,100 200 7,300 4,136 778 412 1.8 9.4 17.2 $18.11 50 906 25 931 443 96 56 2.1 9.7 16.2 $12.27 630 7,730 350 8,080 1,949 528 294 4.1 15.3 26.3 $9.03 1,500 13,545 0 13,545 6,622 795 423 2.0 17.0 32.0 Average: Median: 2.8 13.1 22.4 2.1 14.1 111.8 2 (10 pts) If Company A is your acquisition target, at what share price range would you expect to start your negotiations based upon its P/E multiple? What if Company D was your acquisition target? 3 (10 pts) What factors could make your peer multiples unreliable? Name and describe at least four. 1 (5 pts) Proper grammar, full sentences, correct spelling and punctuation, and a neat and professional format with clearly labeled answers are required
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