Question: Below is an example of the problem I need help with >>> After researching the competitors of EJH Enterprises, you determine that most comparable firms

Below is an example of the problem I need help with >>>


After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratic EV/EBITDA Comp 1 12 19 Comp 2 11 18 Comp 3 12.5 20 Comp 4 10 17 PIE EJH Enterprises has EPS of $2.00, EBITDA of $290 million, $29 million in cash, $45 million in debt, and 101 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.) Question Help After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: EV/EBITDA P/E Comp 1 12 19 Comp 2 11 18 Comp 3 12.5 20 Comp 4 10 17 EJH Enterprises has EPS of $1.80, EBITDA of $290 million, $26 million in cash, $44 million in debt, and 105 million shares outstanding. What range of prices is consistent with both sets of multiples? For the EV/EBITDA multiples, the equity value based on each comp can be computed as: Equity Value = (EV/EBITDA Ratio) EBITDA + Cash - Debt To determine the range from the EV/EBITDA ratios, use the following formula: (EBITDA EV/EBITDA Ratio) + Cash - Debt Po = Shares Outstanding To determine the range from the P/E ratios, use the following formula: Po=P/E Ratio EPS The range from the EV/EBITDA method is [$27.45$,34 35). The range from the P/E method is [$30.60,$36.00]. Question is complete. Tap on the red indicators to see incorrect answers. All parts showing Close Lowest price within both the P/E and EV/EBITDA ranges is $ 30.60. (Round to two decimal places.) Highest price within both the P/E and EV/EBITDA ranges is $ 34.35' (Round to two decimal places.)
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