Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zmart, an Australian food supermarket chain, has earnings per share (EPS) of $1.50, EBITDA of $40.7 million and 9.4 million shares outstanding. Zmart also has

Zmart, an Australian food supermarket chain, has earnings per share (EPS) of $1.50, EBITDA of $40.7 million and 9.4 million shares outstanding. Zmart also has debt of $95million. Ymart is also an Australian food supermarket chain that competes directly with Zmart. Ymart has no debt, price to EPS (P/E) multiple of 10.3, and enterprise value to EBITDA (EV/EBITDA) multiple of 7.9. Using Ymarts multiples, estimate:

a) Zmarts enterprise value

b) The market value of Zmarts equity

c) Zmarts share price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio

Authors: Robert A.Weigand

1st edition

978-111863091, 1118630912, 978-1118630914

More Books

Students also viewed these Finance questions