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Weghorst Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $4 this coming year. The average

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Weghorst Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $4 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 10. The estimated intrinsic value of Weghorst Co.'s stock will be per share. Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm. Suppose you have the information given in the following table for Company X. EBITDA Total value of equity Total firm value Year 1 $14,240 $162,000 $243,000 Year 2 $16,500 $150,000 $270,000 ory What is value of the entity multiple of Company X in Year 1? 17.06 OC 16.36

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