Question
You would like to use Multiples analysis to get an estimate for the Enterprise Value of Disney's new streaming video service, Disney Plus. All you
You would like to use Multiples analysis to get an estimate for the Enterprise Value of Disney's new streaming video service, Disney Plus. All you know about Disney Plus is that it has 10 million subscribers.
A firm similar to Disney Plus is Netflix (even assume their growth rates are similar). Netflix has 158 million subscribers. Its stock price is $310, debt is $13.54 billion, cash is $4.44 billion, and shares outstanding is 438 million. Using this information, what is your best estimate for the EV of Disney Plus?
Group of answer choices
$8.1 billion
$9.2 billion
$10.3 billion
$275.2 billion
$292.0 billion
$331.4 billion
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