Question
You would like to use multiples analysis to estimate stock price of Samsung. The following information is available to you. You know that Samsung has
You would like to use multiples analysis to estimate stock price of Samsung. The following information is available to you. You know that Samsung has sales of $700 millions and EBITDA of $500 million. Samsung has net debt of $220 million and 100 million shares outstanding. You also know the following about LG and Sony. Enterprise value for Sony and LG are $800 million and $1,300 million respectively. Sonys sales and EBITDA are $235 million and $115 million. LGs sales is $550 million and EBITDA is $400 million. What is your best estimate of Samsungs stock price?
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