Toni Brancato, an analyst at the investment banking firm P. J, Nagrom, has estimated the enterprise value of Taglet Inc. at $60 million using DCF. If sold, Toni expects that it would be at the historical industry premium of 20%. At the same time, using a set of recent comparable transactions (similar sized firms in the same industry with the same business model), Toni estimates the enterprise value to be $85 million.

i) Estimate the enterprise value (sales) price for Taglet using both valuation approaches.

ii) Toni attends an internal valuation seminar where the head analyst, Ima Incharge, says DCF is always the best so that has to be given at least 75% weight in any estimate of value. Given this, if Toni did a weighted average valuation based on Imas guidance, what would the estimated enterprise value of Taglet be?