Question
The General Distribution Company (GDC) is a privately held company in the whole-sale food distribution sector. You collected data on a sample of five listed
The General Distribution Company (GDC) is a privately held company in the whole-sale food distribution sector. You collected data on a sample of five listed companies in the same sector which are similar to GDC. Get five estimates of GDCs equity value based on the following data:
Characteristics | GDC | Avg of 5 comparable companies |
Sales | 4,079 mm | 6,615 mm |
EBITDA | 390 mm | 580 mm |
Cash flow to Equity Holders | 102 mm | 180 mm |
Net Profits | 168 mm | 280 mm |
Book Value of Equity | 1,288 mm | 2,100 mm |
Market Capitalization | Unknown | 2,646 mm |
Enterprise Value | Unknown | 3,584 mm |
Net Debt (Debt less Cash) | 856 mm | N/A |
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization.
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