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You are attempting the value a company that you would like to purchase. You have conducted the below comparable company analysis to guide your decision.
You are attempting the value a company that you would like to purchase. You have conducted the below comparable company analysis to guide your decision. Using the below analysis, please answer Questions 7 & 8.
1. Based on actual 2010 comparable company data, what is the highest multiple of EBITDA that you should pay to purchase the target company?
2. Based on actual 2010 comparable company data, what is the midpoint multiple of EBITDA that you should pay to purchase the target company?
Comparable Compary Analysis EVEBITDA Summary P/E Mkt Cap 2010A Price Shares EV 2011E 2012E 2010A 2011E 2012E Company Comps Company A Company B Company C Company D Company E Company F Company G Company H Company $16.95 60.2 $1,032 $1,805 $9,257 $19,074 $2,635 13.6x 11.7x 10.9x 4.4x 3. 8 3.7x 1,730.2 $5.26 15.8x 15.2x 14.5x 4.4x 4,6x 4,Tx $7.57 352.7 $5,190 18.5x 13.8x 11.1x 5.2x 4,5x 4.2x $11.07 456.6 $5,014 $10,033 $1,398 $3,611 12.8x 12.6x 13.5x 5.7x 5.8x 6.1x $17.88 77.5 14.0x 13.2x 12.1x 5.9x 4. 9x 4,3 $15.03 30.2 $422 $41 7 10.4x 10.0x 8.6x 6.0x 5.4x 4.9x $3.28 201.1 $640 $2,777 7.7x 7.5x 6.9x 6.0x 6.1x 6.1x $1.49 63.1 $95 $78 17.5x 12.4x 9.9x 8.9x 8. 0x 6,2 $1.60 200.0 $318 $470 10.7x 8.9x 7.3x 7,9x 6.9x 6.5x Comparable Compary Analysis EVEBITDA Summary P/E Mkt Cap 2010A Price Shares EV 2011E 2012E 2010A 2011E 2012E Company Comps Company A Company B Company C Company D Company E Company F Company G Company H Company $16.95 60.2 $1,032 $1,805 $9,257 $19,074 $2,635 13.6x 11.7x 10.9x 4.4x 3. 8 3.7x 1,730.2 $5.26 15.8x 15.2x 14.5x 4.4x 4,6x 4,Tx $7.57 352.7 $5,190 18.5x 13.8x 11.1x 5.2x 4,5x 4.2x $11.07 456.6 $5,014 $10,033 $1,398 $3,611 12.8x 12.6x 13.5x 5.7x 5.8x 6.1x $17.88 77.5 14.0x 13.2x 12.1x 5.9x 4. 9x 4,3 $15.03 30.2 $422 $41 7 10.4x 10.0x 8.6x 6.0x 5.4x 4.9x $3.28 201.1 $640 $2,777 7.7x 7.5x 6.9x 6.0x 6.1x 6.1x $1.49 63.1 $95 $78 17.5x 12.4x 9.9x 8.9x 8. 0x 6,2 $1.60 200.0 $318 $470 10.7x 8.9x 7.3x 7,9x 6.9x 6.5xStep by Step Solution
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