RATIOS Market Capitalization = # of shares in issue * share price = 9,885 *2.03 = 20,066.55 Enterprise Value = 20,066.55 + 16,492 + 2842 = 39,400.55m EBITA = 7,907 EV/EBITDA RATIO = 20,066.55/7,907 = 4.98 EV/Sales ratio 39,400.55/22,905 = 1.72 Price-to-earnings (PE) ratio Share price / Earnings per share =203/17.5p = 11.6 Price-to-cash-flow ratio Market Capitalization / Cash Flow = 20,066.55/(6271-5650) = 20,066.55/621 = 32.31 Comment on the use of the above ratios for company valuation and assess the general advantages and disadvantages of market multiples for valuations