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You are trying to value the equity of a company with total Sales of 200, Comprehensive income of 10, and Common shareholders equity of 100.

You are trying to value the equity of a company with total Sales of 200, Comprehensive income of 10, and Common shareholders equity of 100. You decide to conduct a comparable companies valuation using the following three comparable companies:

Comparable X

Comparable Y

Comparable Z

Income Statement

Sales

500

300

400

Operating income (after tax)

100

20

60

Net financial expense (after tax)

(30)

0

(50)

Comprehensive income

70

20

10

Balance Sheet

Operating assets

550

400

650

Operating liabilities

(100)

(100)

(150)

Net operating assets

450

300

500

Financial obligations

300

0

450

Financial assets

(50)

0

(50)

Net financial obligations

250

0

400

Common shareholders equity

200

300

100

Market Data

Price

8

3

1

Shares outstanding

100

250

200

Market capitalisation

900

750

200

You include all three companies in your multiples calculation. What is the value of your company using the mean P/B multiple?

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