Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Marketing

Authors: Annmarie Hanlon

1st Edition

1526426676, 9781526426673

Students also viewed these Accounting questions

Question

Which of the following is an example of malicious prosecution

Answered: 1 week ago