An independent valuation consultancy is undertaking an assignment for a new client. In your role as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An independent valuation consultancy is undertaking an assignment for a new client. In your role as investment analyst at the consultancy, you have been asked to work on a broad range of valuation tasks and related calculations relevant to this assignment. 13. The new client is interested in exploring different valuation ranges for Signify Limited, based on the application of different multiples. Signify has two competitors, Import Plc and Switch Limited. You have prepared a comparables table as follows: Competitor Switch Import P/E 12x 14x EBIT Debt EV/EBITDA 7x 5x EV/EBIT 8x 6x P/E - Price to earnings ratio EV/EBITDA = Enterprise Value to earnings before interest, tax, depreciation and amortisation EV/EBIT = Enterprise Value to earnings before interest and tax Key information for Signify Limited: S 40 00322店 90 Operating liabilities Depreciation and amortisation Book value of equity Surplus cash You have also established that earnings per share is 30 cents and there are 100 shares outstanding. Required: (1) 60 9 70 15 Using the average multiples of Signify's competitors above, derive a range of enterprise values (i.e. using PE, EV/EBITDA and EV/EBIT) [8 Marks] An independent valuation consultancy is undertaking an assignment for a new client. In your role as investment analyst at the consultancy, you have been asked to work on a broad range of valuation tasks and related calculations relevant to this assignment. 13. The new client is interested in exploring different valuation ranges for Signify Limited, based on the application of different multiples. Signify has two competitors, Import Plc and Switch Limited. You have prepared a comparables table as follows: Competitor Switch Import P/E 12x 14x EBIT Debt EV/EBITDA 7x 5x EV/EBIT 8x 6x P/E - Price to earnings ratio EV/EBITDA = Enterprise Value to earnings before interest, tax, depreciation and amortisation EV/EBIT = Enterprise Value to earnings before interest and tax Key information for Signify Limited: S 40 00322店 90 Operating liabilities Depreciation and amortisation Book value of equity Surplus cash You have also established that earnings per share is 30 cents and there are 100 shares outstanding. Required: (1) 60 9 70 15 Using the average multiples of Signify's competitors above, derive a range of enterprise values (i.e. using PE, EV/EBITDA and EV/EBIT) [8 Marks]
Expert Answer:
Answer rating: 100% (QA)
To derive a range of enterprise values for Signify Limited using the average multiples of its compet... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
of stion You're a social media specialist for Ontario Science Centre. The Centre is launching a winter campaign to encourage families to visit the facility during the month of February. Create a...
-
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
-
This case study on project evaluation is applicable for beginning courses in corporate finance or finance strategy. Two alternative investment options are available to evaluate. Challenges are...
-
In Exercises 3344, use the graph of y = f(x) to graph each function g. g(x) = f(x) - 2 -4,0) -5-4-3 4-33 y = f(x) y (0,0) 2- 3.4 45 -2) (4-2) X
-
The rms speed of molecules in a gas at 20.0oC is to be increased by 1.0%. To what temperature must it be raised?
-
A geothermal source provides 10 kg/s of hot water at 500 kPa, 150C flowing into a flash evaporator that separates vapor and liquid at 200 kPa. Find the three fluxes of availability (inlet and...
-
Why do bond issuers accept restrictive covenants?
-
The Great Outdoors Clothing Company, a mail-order catalogue operation, contracts with the Federal Parcel Service to deliver all of its orders to customers. As such, Great Outdoors considers Federal...
-
I purchased a house 5 years ago for $ 4 5 0 , 0 0 0 . I had savings to cover 1 5 % of the house for downpayment. For the rest, I financed with 2 loans. For loan X , $ 2 5 0 0 0 0 was given, payable...
-
George Littlechild started a new kitchen and bath design business called Littlechild Enterprises. The following activities occurred during its first month of operations, March 2020: a. Littlechild...
-
Write a program to perform binary search in 2D array ADT. Take the size of the array from user and initialize the array with random values less than 100. Let arr =[[10,20,30,40], [15,25,35,45],...
-
Calculate the beta of a company. a. What data do we need to collect and what calculations we need to do? b. Draw the graph show how to find the beta, please label the axes.
-
Use Excel to prepare in good form a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2023. (See Illustration 4-5 in the textbook...
-
Compute cash flows from financing activities using the above company information. Note: Amounts to be deducted should be indicated by a minus sign. Financing Activities
-
Ali sold 1700 quantity of rings and the price per unit is $11 The company offered 42% trade discount. Calculate the total sales made by Ali
-
The table represents values of differentiable functions f and g and their first derivatives. Use the table of values to answer the questions that follow. Work all of the parts below the line. X f g...
-
What are two main criteria for setting goals? What is the danger of setting goals that are not realistic
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
All of the following actions are consistent with feelings of regret except: a. Selling losers quickly. b. Hiring a full-service broker. c. Holding on to losers too long.
-
Which of the following statements are true? Explain. a. A lower allocation to the risky portfolio reduces the Sharpe (reward-to-volatility) ratio. b. The higher the borrowing rate, the lower the...
-
Consider the following multifactor (APT) model of security returns for a particular stock. a. If T-bills currently offer a 6% yield, find the expected rate of return on this stock if the market views...
-
Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Paulsons transactions during July 2019: July 5 Received materials...
-
The following amounts are available for 2019 for Bishop Manufacturing Company: Required Using the above data, prepare a schedule of cost of goods manufactured and sold. Administrative salaries...
-
You are consulted by Investors, Inc., a group of investors planning a new product. They have estimates of the costs of materials, labor, overhead, and other expenses for 2019 but need to know how...
The Small Business Blueprint From Idea To Empire 2023 1st Edition - ISBN: 979-8374357905 - Free Book
Study smarter with the SolutionInn App