Calculate the implied enterprise value of Rosetta Stone using the average EV/EBITDA multiple for all three categories

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Calculate the implied enterprise value of Rosetta Stone using the average EV/EBITDA multiple for all three categories of comparable firms provided in Exhibit 9 and Rosetta Stone EBITDA provided in Exhibit 6, a total of three multiples. Interpret what these numbers suggest regarding the value of Rosetta Stone. The market-multiples approach seems easy. What are the some pros and cons of using a market-multiples approach in valuation?

ROSETTA STONE, INCH PRICING THE 2009 IPOFinancial Data for Industry ComparableskerarRevenue Incomegrowth growthEVERITA9

Exhibit 6ROSETTA STONE, INC.: PRICING THE 2009 IPOone Historical Financial Performance (2006 to 2008, in thousands of dolla

Posted Date: Nov 24, 2021 06:50 AM

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Calculate the implied enterprise value of Rosetta Stone using the average EV/EBITDA multiple for all three categories

Question:

Recent ROSETTA STONE, INC: PRICING THE 2009 IPO Financial Data for Industry Com 9222222 Recent ROSETTA STONE, INC: PRICING THE 2009 IPO Financial Data for Industry Com 9222222

Expert Answer:

Exhibit 9 Industry Comparables Company Category Revenue 2008 EBITDA 2008 EVEBITDA Multiple Pearson E... View the full answer

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