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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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