Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Clever Girl Finance Learn How Investing Works Grow Your Money

Authors: Bola Sokunbi

1st Edition

1119696739, 978-1119696735

More Books

Students also viewed these Finance questions

Question

List the advantages and disadvantages of the pay programs. page 505

Answered: 1 week ago