XYZ Ltd is a family-based private company operating in the pharmaceuticals industry. XYZ's management is planning to expand its operations by raising capital through initial public offerings of 450,000 shares. As XYZ is currently unlisted, management doesn't know its current market price. As a first step of understanding XYZ's relative value, the management is seeking your advice on the matter. The management has considered the following five pharmaceuticals companies from 2019. Company Share Price Book Value R&D Shares Outstanding Sales revenue Net Earnings Wipe Corp 3.25 1,950,000 4,890,132 1,450,650 950,726 238,000 Kleen Inc 60.38 145,000 6,220,550 1,090,200 852,980 287,940 Sani Group 25.32 469,500 5,990,000 850,000 469,420 124,000 SA Group 105.29 153,920 Blue Crop 15.87 24,500 589,400 1,650,232 1,150,000 845,670 9,883,260 2,476,000 986,450 ? 6,750,550 1,500,650 975,000 328,990 XYZ ? 468,955 Using these numbers: (i) (ii) Calculate relevant multiples. [8 marks] Estimate a value for XYZ. [2 marks] What should be the value per share of XYZ? [2 marks] If XYZ management is hoping for the initial share price to be $35, should management continue with the initial public offering? [2 marks] What are the limitations of the analysis? [3 marks] (iv) (v)