Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are trying to value a company which had revenues of $27 million over the last twelve months. Depreciation and amortization expenses were $8 million.
-
You are trying to value a company which had revenues of $27 million over the last twelve months. Depreciation and amortization expenses were $8 million. Operating margin is 35.4%. It has $24 million of debt, $3 million in cash, and 13 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 14. What is the company's share price using relative valuation?
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