Consider a company which had revenues of $49 million over the last twelve months. 

(a) Depreciation and amortization expenses were $7 million. 

(b) Operating margin was 37.2%. It has $29 million of debt, $8 million in cash, and 7 million shares outstanding. 

(c) Comparable companies are trading at an average trailing EV/EBITDA multiple of 11. 

(d) How much is each share worth using relative valuation? Round to one decimal place.

Answer rating: 100% (QA)

Answer Determining Share Price using Relative Valuation EVEBITDA Multiple Heres how to find the share price using relative valuation 1 Calculate EBITD... View the full answer