Question
The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing firm (not shown)
The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing firm (not shown) had sales of $640 million, EBITDA of $84 million, excess cash of $67 million, $14 million of debt, and 120 million shares outstanding. If the enterprise value to sales for comparable businesses is used, which of the following is the range of reasonable share price estimates?
Question options:
| $4.59 to $12.23 | |
| $6.19 to $9.32 | |
| $6.27 to $8.86 | |
| $1.15 to $1.53 |
| Name | Market Capitalization ($ million) | Enterprise Value ($ million) | P/E | Price/ Book | Enterprise Value/ Sales | Enterprise Value/ EBITDA |
| Gannet | 6350 | 10,163 | 7.36 | 0.73 | 1.4 | 5.04 |
| New York Times | 2423 | 3472 | 18.09 | 2.64 | 1.10 | 7.21 |
| McClatchy | 675 | 3061 | 9.76 | 1.68 | 1.40 | 5.64 |
| Media General | 326 | 1192 | 14.89 | 0.39 | 1.31 | 7.65 |
| Lee Enterprises | 267 | 1724 | 6.55 | 0.82 | 1.57 | 6.65 |
| Average | 11.33 | 1.25 | 1.35 | 6.44 | ||
| Maximum | +60% | 112% | +16% | +22% | ||
| Minimum | -40% | -69% | -18% | -19% |
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Essentials Of Real Estate Finance
Authors: David Sirota, Doris Barrell
14th Edition
1475428391, 9781475428391
