True Value Ltd is planning to raise funds through issue of Common Stock

for the First Time $.$ The Management of True Value Ltd is not sure about

the value of the Company $.$ They decide to study the similar and

comparable companies to True Value in most of the aspecThe following is the data for the comparable companies $($Rs Crores$)$ts$.$

Data is provided as image, please refer.

The Valuer assigned the task feels that weightage of $50\%$ should be given to

earnings in the valuation and rest $25\%$ each should be given to sales and book

value $.$Required : Calculate the Market Value of True Value Ltd $($Hint$)$

a$)$ Calculate Price $/$ Sales $,$ Price to earnings and Price to Book value of the

three comparable companies $.$

b$)$ For calculating the Market Value of True Value Ltd $,$ take the average of

the three ratios ie of rice$/$ Sales, Price$/$ Earnings, Price $/$ Book Value

c$)$ Average P$/$ Sales X Sales TV Ltd X$(0\mathrm{.}25)+$ Average P$/$ Earnings x

TV Earnings X $($ O$\mathrm{.}50)+$ Average P$/$ BV X BV TV X $(0\mathrm{.}25)=$ Est MV of TV