a) You want to value the unlisted chemical company MasyTech based on P/E ratios of the...

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a) You want to value the unlisted chemical company MasyTech based on P/E ratios of the largest chemical companies (see table below) in the world. MasyTech reported EPS of $12 last year. Use the information in the table to estimate a reasonable stock price for MasyTech. Share price EPS BASF 5,243 70,47 35,64 Bayer 1,511 Dow Chemical 47,40 4,401 EI DuPont 41,00 2,572 Eastman Chemical 51,69 5,750 FMC 59,52 5,729 Rohm & Hass 45,02 2,678 b) Airgas' reported EBITDA of 943 million last year. The average enterprise value-to-EBITDA of similar companies is 11,09. Airgas reported interest-bearing debt of 3 billion and a cash balance of 900 million. What is a reasonable equity value for Airgas? a) You want to value the unlisted chemical company MasyTech based on P/E ratios of the largest chemical companies (see table below) in the world. MasyTech reported EPS of $12 last year. Use the information in the table to estimate a reasonable stock price for MasyTech. Share price EPS BASF 5,243 70,47 35,64 Bayer 1,511 Dow Chemical 47,40 4,401 EI DuPont 41,00 2,572 Eastman Chemical 51,69 5,750 FMC 59,52 5,729 Rohm & Hass 45,02 2,678 b) Airgas' reported EBITDA of 943 million last year. The average enterprise value-to-EBITDA of similar companies is 11,09. Airgas reported interest-bearing debt of 3 billion and a cash balance of 900 million. What is a reasonable equity value for Airgas?

Answer rating: 100% (QA)

Solution a The PE ratio equals the companys stock price divided by its most recently reported ... View the full answer