Question: Forward P/E We took a five-year average multiple of all the companies in Martin Mariettas peer group which came out to 41.2 in which I

Forward P/E

We took a five-year average multiple of all the companies in Martin Mariettas peer group which came out to 41.2 in which I multiplied by my forecasted EPS of 3.87 and that gave me an intrinsic value of $159.28.

Price/Book

For the P/B multiple, we averaged the peer groups P/B multiple which came out to 2.83. From there, I used that peer group average and multiplied it by my forecasted BVPS of 126.2 which gave me an intrinsic value of $357.3.

EV/EBITDA

We averaged the peer group's average multiple and multiplied it by the forecasted EBITDA of $9,480,000,000 to give me an enterprise value of $124,377,600,000. With that EV, I then subtracted the total debt of $4,858,900,000 and added cash and equivalents of $595,800,000 to get shareholders equity at a value of $120,114,500,000. I divided the shares outstanding of 61,180,000 to get an intrinsic value of $1943.

-WITH THIS INFO, I'M NOT SURE HOW TO FIND THE CURRENT PRICE

-WITH THE VALUE TABLE BELOW I NEED TO FIGURE OUT THE MOS AND WEIGHT OF EACH AND THEN THE TARGET PRICE AND MOS

Forward P/E We took a five-year average multiple of all the companies

\begin{tabular}{|c|c|c|c|c|} \hline Valuation Model & Multiple & Intrinsic Value & MOS & Weight \\ \hline EV/EBITDA & 13.1x & $1,943 & % & % \\ \hline Price/Book & 2.8x & $357.3 & % & % \\ \hline Forward P/E & 41.2x & $159.3 & % & % \\ \hline & \multicolumn{2}{|c|}{ Target Price =} & \multicolumn{2}{c|}{ MOS = \% } \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!