Question
This is the complete question : Q. New Line technologies Ltd. is planning to acquire Frontline Technologies Ltd. as part of its expansion strategy. To
This is the complete question :
Q. New Line technologies Ltd. is planning to acquire Frontline Technologies Ltd. as part of its expansion strategy. To arrive at a reasonable estimate of valuation of the target firm, it is planning to use the comparable companys financial data. The Following financial information is presented for a competitor, Block Chain Technologies, Inc.
Financial Year 2019 All values are in INR millions except per share data | ||
Sales | 235 | |
EBIT | 65 | |
Net Income | 51 | |
Basic Shares Outstanding | 5.5 | |
EBITDA | 76 | |
Market Price per share (INR) | 135 | |
Total Assets | 322 | |
Long-Term Debt | 70 | |
Share Holders' Equity | 145 | |
Liabilities & Shareholders' Equity | 322 | |
Net Operating Cash Flow | 73 |
Required: Derive the valuation estimate per share of equity for New Line Technologies if it is reporting the following financials:
Revenue: INR 100 million; EBIDTA: INR 40 million; Net Income: INR 28 million;
Book Value: INR 100 million; Basic Share outstanding: 15 million.
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