Weghorst Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $3 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 8.

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.

	Year 1	Year 2
EBITDA	$7,650	$9,150
Total value of equity	$76,500	$82,500
Total firm value	$99,450	$132,000

What is value of the entity multiple of Company X in Year 1?

14.43

10.00

13.00

16.90