1. eric Calculations (50 points) Please use the tables below to answer the following questions. a. Please calculate the fair equity value for XYZ Steel Company based on global peer comparison (relative valuation/multiple valuation) method. Please use given weights above for the multiples using your valuation. Current price of the Company is 10 USD/share b. Please identify whether the company is over/undervalued according to your calculation? Balance Sheet ($ in Mn) Income Statement til Assets 2019 2018 sta Liabilities and Owners' Equity ($ in Mn.) 2019 2018 2019 Current Assets int Current Liabilities Sales 1400 ag. Cash 710 600 Accounts Payable 410 370 Cost of Goods Sold Accounts Receivable 800 670 600 Notes Payable 330 270 Administrative Expenses 100 as Inventory 1260 1100 Depreciation 57 ld. ated sumes th ver, while Total Current Assets 2640 2300 Total Current Liabilities Earnings Before and 740 640 443 Interest and Taxes od. Long Term Debt 1916 1730 Interest Expense 150 Fixed Assets Total Long Term Liabilities 1916 1730 Taxable Income 293 Property, Plant, and Equipment 1200 1100 Taxes 51 Less Accumulated Depreciation 137 80 Common Stock 370 340 Net Income 242 Net Fixed Assets 1063 1020 Capital Surplus 450 440 Dividends 185 Retained Earnings 227 170 Total Owners' Equity 1047 950 C6 Total Assets C6 Global Steel Companies Total Liabilities and 3703 3320 3703 3320 Owners' Equity Total Market Country Cap (mn.) P/BV P/E P/Sales EV/Sales EV/EBITDA BORUSAN BORU USINAS SIDERURGICAS DE MINAS GERAIS,S.A. Turkey 278 0.54 8.88 0.30 0.72 8.49 Brazil 1,727 0.51 18.34 0.46 116 7.89 Poland 266 0.41 6.36 0.26 1.22 2.1 STALPRODUKT SA Russian Federation 172 0.34 4.65 1.31 1.91 KORSHUNOVSKII GOK Russian Federation 126 0.20 0.56 0.08 1.50 CMK 242 0.54 3.93 0.73 2.33 CIA DE FERRO LIGAS DA BAHIA - FERBASA Brazil 476 0.76 3.88 0.24 0.58 AL EZZ DEKHEILA STEEL-ALEXANDRIA Egypt 298 0.51 6.00 0.37 1.62 CORPORACION ACEROS AREQUIPA S.A. (CORAREC1) Peru 1,143 0.57 152.68 0.68 1.82 Chile CAP S.A. 784 0.32 6.03 0.07 0.90 Brazil METALURGICA GERDAU SA 525 0.71 5.26 0.47 0.97 Turkey KARDEMIR (A) 0.51 6.00 0.37 1.22 Median 10% 10% 30% 20% Weights G Modified Date: 19.01.2022 16:15:17 | 70% |