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Market Data Valuation EV/EBITDA Company Name EV ($M) Financial Data Sales ($M) EBITDA Earnings ($M) ($M) EV/Sales Net Debt ($M) P/E A 125 268 76
Market Data Valuation EV/EBITDA Company Name EV ($M) Financial Data Sales ($M) EBITDA Earnings ($M) ($M) EV/Sales Net Debt ($M) P/E A 125 268 76 47 4.0 14.1 20.1 B Price Shares (M) Market Cap ($/share) ($M) $9.45 100 945 $5.68 1,250 7,100 $18.11 50 906 $12.27 630 7,730 $9.03 1,500 13,545 200 412 1.8 9.4 778 96 C 1,070 7,300 931 8,080 13,545 25 56 4,136 443 1,949 6,622 D 17.2 16.2 26.3 350 294 2.1 4.1 2.0 528 795 9.7 15.3 17.0 E 0 423 32.0 2.8 13.1 22.4 Average: Median: 2.1 14.1 111.8 (10 pts) If Company A is your acquisition target, at what share price range would you expect to start your negotiations based upon its P/E multiple? What if Company D was your acquisition target? (10 pts) What factors could make your peer multiples unreliable? Name and describe at least four. (5 pts) Proper grammar, full sentences, correct spelling and punctuation, and a neat and professional format with clearly labeled answers are required
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