Question
You work as a corporate analyst and your task is to determine the target enterprise value (EV) of the company using the valuation factor method.
You work as a corporate analyst and your task is to determine the target enterprise value (EV) of the company using the valuation factor method. The income statement of the target company is as follows:
(in thousands of dollars)
Revenue 5 703 purchases 3 022 wages 734 depreciation 673 other operating expenses 507 PROFIT 767 interest expenses 30 PROFIT before taxes 737 income taxes 123 PROFIT for the financial period 614
What is the target debt-free enterprise value (EV) of the company, when it is known that the EV / EBITDAs of the four other benchmark companies are 6, 7, 7 and 8? Select one: a. The target value of the target company is USD 10,080 thousand. b. The target value of the target company is USD 11,520 thousand.
c. The target value of the target company is USD 5,369 thousand.
d. The target value of the target company is USD 4,298 thousand.
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