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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 | 7.53 | 7.78 | 0.61 | 11.43 | 3.29 |
Firm B | 9.26 | 11.37 | 1.60 | -3.69 | 4.10 |
Firm C | 7.46 | 18.93 | 1.61 | 15.70 | 8.51 |
Firm D | 8.34 | 9.14 | 1.59 | 14.90 | 1.85 |
Firm E | 6.88 | -5.34 | 1.10 | 11.13 | 5.63 |
Firm F | 16.95 | 18.80 | 1.67 | 24.21 | 1.85 |
Information for Firm X | Amount |
Cash | $556,267 |
Cost of goods sold | $11,390,951 |
Current assets | $2,767,255 |
Current liabilities | $1,990,809 |
Long-term assets | $12,611,291 |
Long-term liabilities | $4,346,673 |
Net income | $3,271,079 |
Note: shares outstanding | 467,962 |
Revenue | $30,232,497 |
SG&A and other indirect expenses | $13,004,649 |
Debt | $2,426,210 |
EBITDA | $8,350,059 |
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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