Comparable company valuation is one of the most used valuation methodologies and a sanity check against a
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Question:
Comparable company valuation is one of the most used valuation methodologies and a "sanity check" against a DCF valuation. Using the median EV/EBITDA multiple of the given peer companies, calculate the Target Company's expected equity value per share.
Relative Valuation Multiples | |||||
All figures in USD thousands unless stated | |||||
Peer Companies | EV / EBITDA | Net Debt | Enterprise Value | EBITDA | Net Income |
West Company | 13,3x | 2.150 | 14.435 | 1.086 | 586 |
East Company | 6,5x | 50 | 14.162 | 2.169 | 809 |
North Company | 10,0x | 1.283 | 15.269 | 1.530 | 651 |
South Company | 13,9x | 2.866 | 15.823 | 1.142 | 484 |
11,6 | |||||
Target Company Info | |||||
EBITDA | 650 | ||||
Net Debt | 1.100 | ||||
Shares Outstanding (in millions) | 350 | ||||
Net Income | 333 | ||||
Related Book For
Transportation A Global Supply Chain Perspective
ISBN: 9781337406642
9th Edition
Authors: Robert A. Novack, Brian Gibson, Yoshinori Suzuki, John J. Coyle
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