Mn (Million)

Comparables:

Company A Company B Company C

Price per share $ 11.50 $ 19.60 $ 16.50

Market value of preferred share $ 11.00 mn No preferred share $ 4.70 mn

# of common shares 1.50 mn 0.10 mn 3.50 mn

Book value of debt $ 3.75 mn $ 5.45 mn $ 5.00 mn

Cash and cash Eq $ 1.25 mn $ 0.45 mn $ 1.10 mn

EBIT $ 1.15 mn EBITDA$ 0.75 mn EBIT $ 2.32 mn

D&A $ 0.35 mn $ 0.45 mn $ 0.55 mn

Interest expenses $ 0.25 mn $ 0.25 mn $ 0.12 mn

Tax rate 41% 43% 38%

Target company "T"

Forward EPS $ 0.59

EBITDA $ 2.78 mn

Market value of preferred share $ 0.85 mn

# of common shares 1.85 mn

Book value of debt $ 2.45 mn

Cash and cash Eq $ 0.75 mn

Tax rate 40%

You are asked to value company T using the Multiple (comparable) approach. You are given company, A, B, and C as comparables.

Calculate the price per share of T using EV/EBITDA multiple. Use simple average of comparables and use all the companies (do

not ignore outliers).