Question
The Newbridge Awning Co calculates the intrinsic calue of its stock to assess oportunities to repurchase shares. Tha company has estimated its WACC to be
The Newbridge Awning Co calculates the intrinsic calue of its stock to assess oportunities to repurchase shares. Tha company has estimated its WACC to be 11.59%. it estimates the sum of the present value of its annual cash flows for the next 5 years to be $50.5 M. iT uses an exit EV/EBIDTA multiple 7X to estimate is terminal value. Based on its most recent model, it estimates the present value of its terminal value to be 155B. The company has debt of $30M and 30M shares oustanding.
What is Newbridges enterprice value ?
Regardless of your answer to question 1, assume that Newbridges enterprice Value is 335M. what will be thhe agreggate intrinsic value of newbridges equity?
Based on your answer to question 2, what is your estimate of Newbridges intrinsic value per share?
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