Below you have financial information of two similar companies ( the company listed and non-listed on the
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| Below you have financial information of two similar companies ( the company listed and non-listed on the stock exchange). | |||
| The company listed on the stock exchange | The company non-listed on the stock exchange | ||
| Market capitalization | 50 | mln zł | |
| Number of issued shares | 19 | 5.7 | mln |
| Market value of bonds | 7 | - | mln zł |
| EBITDA | 19 | 12 | mln zł |
| Profit after tax | 15 | 7.6 | mln zł |
| Sales | 110 | 70 | mln zł |
| NOA (cash) | 2.5 | 2.8 | mln zł |
| Liabilities | |||
| Book value of equity | 14 | 15 | mln zł |
| Book value of bonds | 6 | - | |
| Book value of investment credit | 3 | 7.5 | mln zł |
| Book value of other financial liabilities | 4.1 | 1 | mln zł |
| Trade payables | 10 | 7.5 | mln zł |
| Total Liabilities | 37.1 | 31 | mln zł |
| a) Please estimate the price of shares of the company non-listed on the stock exchange using the following valuation multiples: | |||
| - V / EBITDA ( 2,5 points) | |||
| - P / E ( 2,5 points) | |||
| - P / BV ( 2,5 points) | |||
| - V/S ( 2,5 points) | |||
| b) Explain why there is a difference in received value when you apply different multiples. (2,5 points) | |||
| c) What multiples and why is most reliable? (2,5 points) | |||
Expert Answer:
SOLUTION a Estimating the price of shares of the nonlisted company using different valuation multiples VEBITDA VEBITDA multiple Market capitalization EBITDA For the listed company VEBITDA 50 mln z 19 ... View the full answer
Related Book For 
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
