Williams Company is a manufacturer of auto parts having the following financial statements for 20152016.

Balance Sheet

December 31, 2016

2016

Cash

$

272,000

Accounts receivable

162,000

Inventory

397,000

Total current assets

$

831,000

Long-lived assets

1,760,000

Total assets

$

2,591,000

Current liabilities

332,000

Long-term debt

912,000

Shareholder equity

1,347,000

Total debt and equity

$

2,591,000

Income Statement
For the years ended December 31, 2016
	2016
Sales	$	3,620,000
Cost of sales		2,740,000
Gross margin		880,000
Operating expenses*		512,000
Operating income		368,000
Taxes		128,800
Net income	$	239,200

Cash Flow from Operations
	2016
Net income	$	239,200
Plus depreciation expense		120,000
+Decrease (-inc) in Accounts receivable and Inventory		(147,000	)
+Increase (-dec) in Current liabilities		85,000
Cash flow from operations	$	297,200

*Operating expenses include depreciation expense.

Additional financial information, including industry averages for 2016, where appropriate includes:

	2016			Industry 2016
Capital expenditures	$	175,000
Income tax rate		35	%	35.0	%
Depreciation expense	$	120,000
Dividends	$	38,000
Year-end stock price	$	3.45		25.00
Number of outstanding shares		1,920,000
Sales multiplier				1.50
Free cash flow multiplier				18.00
Earnings multiplier				9.00
Cost of capital		5	%
Accounts receivable turnover				11.10
Inventory turnover				10.50
Current ratio				2.30
Quick ratio				1.90
Cash flow from operations ratio				1.20
Free cash flow ratio				1.10
Gross margin percentage				30.0	%
Return on assets (net book value)				20.0	%
Return on equity				30.0	%

Required: Develop a business valuation for Williams Company for 2016 using the following methods: (1) book value of equity, (2) market value of equity, (3) discounted cash flow (DCF), (4) enterprise value, and (5) all the multiples-based valuations for which there is an industry average multiplier. For the calculation of the DCF valuation, you may use the simplifying assumption that free cash flows will continue indefinitely at the amount in 2016.

Book value of equity	$1,347,000
Market value of equity	6,624,000
Discounted free cash flows
Enterprise value
Multiples-based valuation
Earnings multiple
Free cash flow multiple
Sales multiple