Question
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following: Walmart Statistics: Value: Market
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following:
| Walmart Statistics: | Value: |
|---|---|
| Market capitalization of common stock | $255.70 billion |
| Market value of debt | $59.17 billion |
| Cash | $9.72 billion |
| EBITDA | $38.66 billion |
| Target Statistics: | Value: |
|---|---|
| Market value of debt | $14.61 billion |
| Cash | $1.85 billion |
| EBITDA | $7.95 billion |
| Shares Outstanding | 0.68 billion |
Based on the EBITDA reported for Target, what is an estimate for Targets enterprise value using Walmarts enterprise value/EBITDA multiple?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Venture capital and the finance of innovation
Authors: Andrew Metrick
2nd Edition
9781118137888, 470454709, 1118137884, 978-0470454701
