Relative Valuation / Free Cash Flow

Now is the second month of your internship at the investment bank. You are well trained in calculating FCF and you are now familiar with different valuation methods. You want to apply what you have learned to calculate the enterprise value of the firm called SoulBiking. SoulBiking is operating in the health and fitness space. It's closest competitor is SoulCycling, another indoor fitness club that provides membership classes.

You have applied the FCF formulas and calculated the following FCFs for SoulBiking: (units are all in $Million)

Please refer to table 1

\fSoulCycling data as of end of 2017 Market Cap 1200 Debt 300 Cash 100 Sales in 2017 800 EBIT in 2017 -10 EBIT in 2018 (forcast) 160