Question
There are 2.5 million shares outstanding The follo wing are projected the end of year 1 Earning ? ? $4.4 Million EBITDA ? $13 Million
There are 2.5 million shares outstanding
The following are projected the end of year 1
Earning? ?$4.4 Million
EBITDA ?$13 Million
Book Value?$39 million
Sales ?$52.5 million
Cash flows to capital ?$9.2 million
Balance sheet cash?$2.1 million
Market value of the debt ?$ 25 million
You have determined the following comp companies average metrics
1.EV to EBITDA = 15.15
2.Price to Book Value = 4.65
3.Price to sales = 2.95
4.P/E = 31
5.Value to cash flow to capital = 18.5
What are the estimated prices of the stock of the firm today using the five multiples above? Note you should determine 5 prices for the firm.
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