8. Market multiple analysis Aa Aa E The discounted cash flow model and the corporate valuation model are the most widely used valuation techniques. Often these valuations are accompanied by market multiple analysis, which is based on the fundamental concept that similar assets should have similar values. Baker Corp. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $6 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 12. What will be the estimated intrinsic value of the Baker Corp.'s stock? $72.00 $2.00 $0.50 30 $ further used to calculate the Market multiple analysis is also used to calculate the value of a compa intrinsic value per share of the firm. Suppose you have the information given in the following table for Company X. EBITDA Total value of equity Total firm value Year 1 $15,300 $153,000 $198,900 Year 2 $18,300 $165,000 $264,000 What is value of the entity multiple of Company X in Year 2? 13.00 09.02 18.76 14.43