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Please Solve by tomorrow The first table presents multiples for peers of Firm X and the second table presents information for Firm X. Use approaches
Please Solve by tomorrow
| The first table presents multiples for peers of Firm X and the second table presents information for Firm X. Use approaches that are consistent with the approach covered in class. Do not round. Use Excel to avoid rounding. | ||||||
| Peer | EV/EBITDA | EV/EBIT | EV/Revenue | P/E | P/B | |
| Firm A | 7.53 | 7.78 | 0.61 | 11.43 | 3.29 | |
| Firm B | 9.26 | 11.37 | 1.60 | -3.69 | 4.10 | |
| Firm C | 7.46 | 18.93 | 1.61 | 15.70 | 8.51 | |
| Firm D | 8.34 | 9.14 | 1.59 | 14.90 | 1.85 | |
| Firm E | 6.88 | -5.34 | 1.10 | 11.13 | 5.63 | |
| Firm F | 16.95 | 18.80 | 1.67 | 24.21 | 1.85 | |
| 10.11 | ||||||
| Information for Firm X | Amount | |||||
| Cash | $556,267 | |||||
| Cost of goods sold | $11,390,951 | |||||
| Current assets | $2,767,255 | |||||
| Current liabilities | $1,990,809 | |||||
| Long-term assets | $12,611,291 | |||||
| Long-term liabilities | $4,346,673 | |||||
| Net income | $3,271,079 | |||||
| Note: shares outstanding | 467,962 | |||||
| Revenue | $30,232,497 | |||||
| SG&A and other indirect expenses | $13,004,649 | |||||
| Debt | $2,426,210 | |||||
| EBITDA | $8,350,059 | |||||
| Fill in the following table. | ||||||
| EV/EBITDA | EV/EBIT | EV/Revenue | P/E | P/B | ||
| What is the estimated share price of Firm X based on the average of relevant peer multiples? | $163.79 | $84.08 | ||||
| What is the estimated share price of Firm X based on the median of relevant peer multiples? | $137.59 | $99.05 | ||||
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