Problem:

ALPHA is a private company with plans of going public. During the most recent fiscal year ALPHA had book value of $100 million and earnings of $4 million. ALPHA will issue 10 million shares. You are given the following table of peer companies. Based on the numbers, estimate the value of the company and the price per share they can expect using comparable companies! Copmany BETA SIGMA VEGA RHO EPSILON Price/Earnings 14,8 18,1 20,1 16,2 15,6 Price/Book 0,42 0,91 0,7 0,5