The discounted cash flow model and the corporate valuation model are the most widely used valuation techniques. Often these

valuations are accompanied by market multiple analysis, which is based on the fundamental concept that similar assets should have

similar values.

Hackworth Co$.$ is a privately owned firm with few investors. Investors forecast their earnings per share $($EPS$)$ to reach $$3$ this coming year. The

average price$-$to$-$earnings $($P$/$E$)$ ratio for similar companies in the S&P $500$ is $10.$

The estimated intrinsic value of Hackworth Co$.\text{'}$s stock will be

per share.

Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm.

Suppose you have the information given in the following table for Company X$.$

What is value of the entity multiple of Company $x$ in Year $1?$

$14\mathrm{.}43$

$13\mathrm{.}00$

$16\mathrm{.}90$

$10\mathrm{.}00$