Question
You are considering the purchase of a stock that is not currently listed on an active secondary market. On the recent financial statement, the book
You are considering the purchase of a stock that is not currently listed on an active secondary market. On the recent financial statement, the book value of equity is reported as $36,425,000 and there are 6,257,000 shares outstanding. You plan on calculating the MarkettoBook Ratio for a comparable company whose shares are publically traded, and are currently selling for $27.93. This firms book value of equity is $139,843,000 and it has 27,826,000 shares outstanding. Based on this comparable MarkettoBook Ratio, how much should you be willing to pay for the shares of your firm of interest?
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