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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
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