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You want to estimate the price of a DEF share. DEF is not a listed company. You want to use the information on another company,
You want to estimate the price of a DEF share. DEF is not a listed company. You want to use the information on another company, Superstar Inc., which is listed and quite similar to DEF. Superstar has 1,000,000 shares with a current share price of $ 10 per share and has issued 20,000 bonds with a face value of $ 1000 and a current market price of $ 962. Its EBITDA last year was $ 5,000,000. DEF has total debt of $ 5,000,000, and its equity is divided into 2,000 shares. Its EBITDA last year was $ 1,000,000. What is a good estimate of DEF's share price based on this information
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