BTech is a privately owned firm which has been operating in the biotechnology industry. The firm aims to raise capital through an Initial Public Offering (IPO) to expand its operations. ABN Investment Bank has undertaken the management of the share issue. Being a junior analyst, you are supposed to use a simple valuation technique to determine the share value. You decided to begin with 'comps' and collect financial data from the 2020 annual reports of six companies similar to BTech. Given the nature of the business, you have included R&D as a measure in addition to commonly used measures such as sales, book value and earnings. BTech had a book value of $1,100 million in 2019. In addition, BTech had 3,975 million shares outstanding throughout the year.The market value of equity for five comparable companies is also given. All numbers are in millions of dollars.

Company	Market value of equity	Book value	Sales revenue	R&D	Net Income
Actino	8,096.71	1700	1,571.00	307.00	406.00
Exincan	1,379.00	400	200	105	56
SenAnti	2,233.60	600	350	127	33.5
Xtel	925	350	150	75.5	17.5
Ronco	588.53	125	115	50.8	12
BTech	?	?	700	300	115

Using the above details:

1. Calculate relevant average multiples. (6 marks)

2. Estimate a value for BTech. (3 marks)

3. What should be the value per share of BTech? A market analyst speculated that BTech share price should be around $1.20 per share. If the analyst's statement is true, what is your view on the value of the share?