Valuation multiples Millions 75 Shares Outstanding in Millions Share Price Income Statement Sales EBITDA EBIT Net Income Millions 1500 200 180 125 Balance Sheet Cash and Cash Equivalents Short Term Interest Bearing Debt Long Term Interest Bearing Debt B V of Equity 725 Please use the above information to answer the following questions. Note down the multiples you calculated because they will be used for later questions. What is the enterprise value-to-EBIT (EV/EBIT) multiple? Review Later 7.5 6.43 OOOO 6.75 7.71 Valuation multiples 75 Income Statement Sales EBITDA EBIT Net Income Shares Outstanding in Millions Share Price Millions 1500 200 180 Balance Sheet Cash and Cash Equivalents Short Term Interest Bearing Debt Long Term Interest Bearing Debt BV of Equity Millions 50 25 250 125 725 Please use the above information to answer the following questions. Note down the multiples you calculated because they will be used for later questions. What is the price-to-earnings (P/E) multiple? Review Later Oood Valuation multiples Millions Income Statement Sales EBITDA Millions 1500 Shares Outstanding in Millions Share Price 73 200 Balance Sheet Cash and Cash Equivalents Short Term Interest Bearing Debt Long Term Interest Bearing Debt BV of Equity 25 EBIT 250 180 125 Net Income 725 Please use the above information to answer the following questions. Note down the multiples you calculated because they will be used for later questions. 15 What is the price-book (P/B) multiple? Review Later 0.69 0.11 OOOO 1.55 0.75 Please use the information here to answer the following questions. 80 Shares outstanding in Millions Share price Income Statement Millions Sales 1200 EBITDA 420 EBIT Net income 150 Balance Sheet Millions Cash and Cash Equivalents 100 Short term interest bearing debt 50 Long term interest bearing debt 150 BV of equity 16 Review Later What is the share price when the enterprise value-to-sales (EV/Sales) multiple of a comparable company is 0.8? 10.25 9.1 9.8 10.75 Calculating share price using multiples Please use the information here to answer the following questions. 80 Shares outstanding in Millions Share price Income Statement Millions Sales 1200 EBITDA EBIT Net income 420 Balance Sheet Millions Cash and Cash Equivalents Short term interest bearing debt 50 Long term interest bearing debt BV of equity What is the share price when the price-to-earnings (P/E) multiple of a comparable company is 6.5? Review Later 12.6 O 12.2 12.6 O 11.9 o 11.4 11.9