On January 2017, Delta Airlines announced its interest in acquiring Aeromexico. They consider as the peer companies: American Airlines, LATAM Airlines, Air France and Air China. The following multiples are available (January 21, 2017): Interjet Gol EasyJet Vueling PE 22.4 23.5 21.4 19.7 growth net income 6% 3% 8% 6% EV/EBIT 12.5 13.2 11.9 14.3 The following information from Aeromexico is given: Income statement Year 2016 Sales $12,292,500.00 - cost of sales $ 8,235,975.00 Gross profits $ 4,056,525.00 operating expenses $ 2,243,488.00 - depreciation expenses $ 148,064.00 Operating income $ 1,664,973.00 - Interest $ 195,388.00 expenses EBT $ 1,469,585.00 - taxes $ 440,876.00 Net income $ 1,028,709.00 Determine the value of the equity according to PEG and EV/EBIT multiples. For the growth of the earnings: assume that the growth of Aeromexico is 3.5% annual. Aeromexico's debt is $2,442,350 and Cash $1,500,000 P/E=22,374,420.75, PEG= 15,774,719.57, EV/EBIT=20,880,874.68 P/E=17,333,746.65, PEG= 21,103,322.19, EV/EBIT=20,993,669.28 P/E=22,374,420.75, PEG= 15,774,609.57, EV/EBIT=20,660,674.68