Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the following table, please answer the question below. Enterprise Current Value Stock Price (C$MM) Equity Value (C$MM) Enterprise Value/EBITDA Equity Value/Net Income LTM

image text in transcribed

Using the following table, please answer the question below. Enterprise Current Value Stock Price (C$MM) Equity Value (C$MM) Enterprise Value/EBITDA Equity Value/Net Income LTM LFY+1 LTM LFY+1 Company Company A $11.45 $657 $542 12.3x 10.6x 18.7x 16.5x Company B $11.36 $632 $520 12.1x 10.5x 18.3x 16.1x Company C $10.32 $598 $534 11.6x 9.5x 17.9x 15.3x You have the following information about the company SudsandBuds which you are trying to value: (amounts in millions) LTM EBITDA $43 Net Income $25 LFY +1 $50 $30 In addition, you know that SudsandBuds has Net Debt of $80 million and 124 million shares outstanding. What is "SudsandBuds worth on a per share basis, given the publicly traded comparable company analysis shown above? Please show all your work and round to at least 2 decimal points.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

International Financial Management

Authors: Cheol S. Eun, Bruce G.Resnick

6th Edition

71316973, 978-0071316972, 78034655, 978-0078034657

More Books

Students also viewed these Finance questions

Question

Keep descriptions and explanations brief.

Answered: 1 week ago