Question
The first table presents multiples for peers of Firm X and the second table presents information for Firm X. Use approaches that are consistent with
The first table presents multiples for peers of Firm X and the second table presents information for Firm X. Use approaches that are consistent with the approach covered in class. Do not round. Use Excel to avoid rounding. |
Peer | EV/EBITDA | EV/EBIT | EV/Revenue | P/E | P/B |
Firm A | 7.66 | 8.45 | 0.63 | 14.41 | 4.09 |
Firm B | 7.55 | 18.49 | 2.08 | 23.36 | 11.66 |
Firm C | 12.10 | 11.91 | 1.40 | 10.85 | 3.72 |
Firm D | 7.17 | -5.52 | 1.61 | 18.67 | 1.66 |
Firm E | 7.21 | 9.68 | 1.21 | -4.68 | 4.58 |
Firm F | 16.62 | 9.72 | 1.95 | 22.07 | 1.95 |
Information for Firm X | Amount |
Note: shares outstanding | 294,879 |
SG&A and other indirect expenses | $7,621,491 |
Current assets | $1,566,805 |
Long-term assets | $6,631,965 |
Long-term liabilities | $2,609,621 |
EBITDA | $4,877,052 |
Cost of goods sold | $6,280,764 |
Current liabilities | $1,098,142 |
Revenue | $17,454,001 |
Cash | $311,982 |
Debt | 1,650,990 |
Net income | $1,692,605 |
Fill in the following table. | |||||
| EV/EBITDA | EV/EBIT | EV/Revenue | P/E | P/B |
What is the estimated share price of Firm X based on the average of relevant peer multiples? | ?? | ?? | ?? | ?? | ?? |
What is the estimated share price of Firm X based on the median of relevant peer multiples? | ?? | ?? | ?? | ?? | ?? |
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