Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are trying to value a company which had revenues of $29 million over the last twelve months. Depreciation and amortization expenses were $7 million.

You are trying to value a company which had revenues of $29 million over the last twelve months. Depreciation and amortization expenses were $7 million. Operating margin is 33.5%. It has $23 million of debt, $6 million in cash, and 11 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 13. What is the company's share price using relative valuation? Round to one decimal place.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Step: 3

blur-text-image

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

Gapenskis Understanding Healthcare Financial Management

Authors: George H. Pink, Paula H. Song

8th Edition

1640551093, 978-1640551091

More Books

Students also viewed these Finance questions