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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
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?
EVIEBITDA PE Summary Comparable Company Analysis EV 2010A 2011E 2012E 2010A 2011E 2012 Price Shares Mkt Cap 3.7x 4.4X 60.2 $1,032 $1,80513.6X 11.7x10.9x $16.95 $5.26 1,730.2 CompanyA Company B 4.6i 4.4X $9,257 $19,07415.8x 15.2x 14.5x $2,635 $5,190 18.5x 13.8x 11.1x 4.5% 5.2x 352.7 $7.57 CompanyO Company D Company E Company F 6.1x 4.3K 5. 8 4.9K 5.7x $5,014 $10,03312.8x .6x 13.5x $1,398 $3,611 $422$41 456.6 77.5 $11.07 5.9X 14.0x 13.2 2.1x 10.4X $17.88 $15.03 4.9K 10.0x 8.6x 6.0x 30.2 6.1x 6.2X 6.1x 6.9X 6.0x 7.7x 7.5x $640 $2,777 $95 201.1 63.1 $3.28 Company G Company H Company l 8.0 8.9x 9.9X $7817.5x2.4x 10.7x $1.49 6.5x 6.9x 7.9x 7.3x 8.9x $470 $318 200.0 $1.60 EVIEBITDA PE Summary Comparable Company Analysis EV 2010A 2011E 2012E 2010A 2011E 2012 Price Shares Mkt Cap 3.7x 4.4X 60.2 $1,032 $1,80513.6X 11.7x10.9x $16.95 $5.26 1,730.2 CompanyA Company B 4.6i 4.4X $9,257 $19,07415.8x 15.2x 14.5x $2,635 $5,190 18.5x 13.8x 11.1x 4.5% 5.2x 352.7 $7.57 CompanyO Company D Company E Company F 6.1x 4.3K 5. 8 4.9K 5.7x $5,014 $10,03312.8x .6x 13.5x $1,398 $3,611 $422$41 456.6 77.5 $11.07 5.9X 14.0x 13.2 2.1x 10.4X $17.88 $15.03 4.9K 10.0x 8.6x 6.0x 30.2 6.1x 6.2X 6.1x 6.9X 6.0x 7.7x 7.5x $640 $2,777 $95 201.1 63.1 $3.28 Company G Company H Company l 8.0 8.9x 9.9X $7817.5x2.4x 10.7x $1.49 6.5x 6.9x 7.9x 7.3x 8.9x $470 $318 200.0 $1.60Step by Step Solution
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