Relative Valuation (Comparable Companies Approach) Problem

Using the following comps data (EV/EBITDA and EV/Sales) to determine the implied

Enterprise Value and Equity Value per share ranges for Cargo King.

Assume benchmarked comps and run true averages.

Data for Cargo King:

Sales (LTM) $ 4,075

EBITDA (LTM) $ 650

Debt (Interest bearing) $ 100

Preferred Equity $ 2 0

Cash & Marketable Securities $ 5 0

Number of shares outstanding 781 m

Comparable Companies: Shares Stock Price Outstanding Cash Total Debt

Market Data

Island Exports $ 30.0 402.0 200.0 2,209.0

Islander Group $ 24.0 349.0 450.0 1,023.0

WEBCO HI $ 18.0 567.0 890.0 1,000.0

Latest 12 months data Sales EBITDA

Island Exports 8,901 1,335

Islander Group 11,234 1,685

WEBCO HI 10,934 1,610