Suppose you have gathered the following data on 2 large U.S. firms that primarily own timber: Rayonier and Plum Creek. We are trying to use the market data on Rayonier to estimate the market value of Plum Creek. We have the following data (in $-billions):

	Market value equity	Value debt	Cash	Net income	EBITDA
Plum Creek	?	3.3	.1	.19	.41
Rayonier	6.1	1.5	.2	.27	.56

Based on the EBITDA multiple, what is the estimated enterprise value of Plum Creek?

Based on the net income multiple, what is the estimated enterprise value of Plum Creek?

If the actual market cap of Plum Creek was $8 billion, would you recommend buying or selling Plum Creek? Why?