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You need too value the common stock of a private firm. The firm currently has sales of $65 million, $30 million in debt, no preferred
You need too value the common stock of a private firm. The firm currently has sales of $65 million, $30 million in debt, no preferred stock, and $9 million in cash. There are 775,000 shares of common stock. To find the value of operations, Vop, you compare the private firm to the following three comparable firms, using their (Enterprise Value / Sales) ratios:
Firm A's EV/Sales: 1.5
Firm B's EV/Sales: 2.0
Firm C's EV/Sales: 1.7
What would be the highest stock price estimate to come from these three comps?
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