Question: An analyst has gathered data on valuation multiples for Merck (MRK) and three other pharmaceutical companles, which will serve as comparable firms: Pfizer (PFE), Ell

An analyst has gathered data on valuation multiples for Merck (MRK)

An analyst has gathered data on valuation multiples for Merck (MRK) and three other pharmaceutical companles, which will serve as comparable firms: Pfizer (PFE), Ell Lilly (LLY), and Sanof- Aventis (SNY Valuation multiples PFE MRK SNY Comparable Company symbol Price/Earnings9.08 Price/Book Price/Sales Enterprise LLY 1.96 2.78 9.93 15.42 1.48 2.05 5.64 846 3.62 1.63 4.94 10.15 1.12 1.87 5.33 average 11.34 2.07 1.85 5.30 Value/EBITDA The analyst is estlmating the value of the equity Insol, a private pharmaceutical company that has $200M In EBITDA and Is financed with $300M In debt. Using the comparable average, the equity of this company would be valued at O $480M O $560M O $760M O $1,060M

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

I attached a finance homework, please do questions 1 to 6 and disregard question 7 .. thank you, FIN734 Assignment 4 Fall 2016...

The following information is relevant to Question 2-3 An analyst has gathered data valuation multiples for Merck(MRK) and three other pharmaceutical companies, which serve as comparable firms: Pfizer...

Kerstin Buckley, a health care analyst, is evaluating Sanofi-Aventis (SNY) for possible inclusion in a clients portfolio. SNY is a company in the health care and pharmaceutical industry. Relevant...

Please answer question a and b. Please include all the python used to achieve the answer. An equities analyst is studying the pharmaceutical industry and would like your help in exploring and...

Help to code the following on R-Script: Pharmaceutical Industry. An equities analyst is studying the pharmaceutical industry and would like your help in exploring and understanding the financial data...

INVESTIGATION 3: Mr Wilkinson, as the CEO of the company, would like to expand opening hours of the department stores run buy his company. His business analyst has gathered data from the last 4 years...

An analyst has gathered data and counted the number of runs with respect to the median. There were 6 0 observations and 2 2 runs. What can the analyst conclude given this information use Z = 3 as...

A simulation analyst has gathered data for a discrete random variable, X. She finds 10 pieces of data with a value of 20, 11 pieces of data with a value of 40 and 13 pieces of data with a value of...

Calculate the size of the database that you created in question F. Provide size estimates for the initial size of the database as well as for the database in one year's time. Assume that the...

Given the following equilibria, calculate the concentration of each zinc species in a solution saturated with Zn(OH)2(s) and containing [OH-] at a fixed concentration of 3.2 10-7M. Zn(OH)2(s) Ksp =...

Ariana owns 5 0 shares of stock in Ban Ray Enterprises. Ariana bought the stock when it was first issued, and the offering was required to be registered with the Securities and Exchange Commission (...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...