Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are comparing Vantex Corp with 3 comparable firms: X, Y and Z. Vantex has EBITDA of $10 million, Debt of $15 million, Cash

 

You are comparing Vantex Corp with 3 comparable firms: X, Y and Z. Vantex has EBITDA of $10 million, Debt of $15 million, Cash of $7 million and 2 million shares of stock. X, Y and Z have enterprise multiples of 10, 12 and 14, respectively. Using the data from these comparable (comp) firms, what would be your highest estimate of the stock price of Vantex?

Step by Step Solution

3.46 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

Enterprise Value of Vantex EBITDA x Enterprise Multiple 10000000 x 14 140000000 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

0135811600, 978-0135811603

More Books

Students also viewed these Finance questions

Question

What are the pros and cons of using social media at work? Discuss.

Answered: 1 week ago