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o Buff Brewing Company The average market-to-book ratio for the brewing industry is 5.8. Estimate the fair value of Buff Brewing Company's shares based on
o Buff Brewing Company The average market-to-book ratio for the brewing industry is 5.8. Estimate the fair value of Buff Brewing Company's shares based on the industry Company average multiple and the data supplied in the table to the right. If the market price will inevitably move to the fair value, what profit (loss) do you Price (dollars) expect to make if you buy one share now and sell the share at the fair value? EPS (dollars) Debt (Sbillion) Equity ($billion) Cash ($billion) EBITDA ($billion) Shares (billion) $24.75 $2.00 $0.6 $8.25 $2.5 $4.000 0.60 The fair value of Buff Brewing Company's shares is $ per share (Round to two decimal places.) The profit that you expect to make if you buy one share now and sell the share at the fair value is $ (Round to two decimal places.)
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