For the year ending Dec. 31, 2022, Arcturus Corp. had EBITDA = $9 million, and Net Income = $5 million.  At the time, Arcturus had debt of $12 million, excess cash of $8 million, and 3.0 million shares outstanding.

A.    Suppose that Spica Inc. (a comparable firm that is publicly traded) has a P/E ratio of 20.  What total equity value and share price would you then estimate for Arcturus.

B.    Suppose that Spica Inc. (the comparable firm) has an Enterprise Value/EBITDA multiple of 11.  What enterprise value and share price would you then estimate for Arcturus?

Answer rating: 100% (QA)

A To estimate the total equity value and share price for Arcturus Corp we can use the PE ratio and t... View the full answer