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You are analyzing Company A and Company B in order to value both companies subordinated unsecured bonds and stock. Companies A and B are in

You are analyzing Company A and Company B in order to value both companies subordinated unsecured bonds and stock. Companies A and B are in the same industry. Company As and Bs LTM EBITDA is $650 million and $725 million, respectively. Company As stock is currently trading at $9.00/share; Company Bs stock is trading at $2.50/share

To accomplish the valuation, you collect the following data on other companies in the same industry.

(in millions)

TEV LTM EBITDA
Company C 2,478.45 391.9
Company D 6,784.8 1,524.7
Company E 6,226.48 1,197.4
Company F 1,575 225

What is the value of Company As stock and subordinated bonds given the capital structure below?

(in millions)

Company A's Cap Structure
First Senior Secured Bank Debt 600
Second Lein Senior Secured Bonds 425
Senior Unsecured 500
Sebordinated Unsecured Bonds 750
Common Shares Outstanding 125

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