I am given the following problems and solutions. Based on this information, what company would be the best to invest in and why?

D. Estimate the enterprise and equity values for WestTek using the individual net sales multiples from EastTek, SouthTek, and NorthTek, as well as for the average of the three competitors or comparable firms. Show the valuation ranges from high to low.

Enterprise Value Estimates:

Using EastTek sales multiple: $21,200,000 2.40 = $50,880,000

Using SouthTek sales multiple: $21,200,000 2.13 = $45,156,000

Using NorthTek sales multiple: $21,200,000 2.50 = $53,000,000

Using average sales multiple: $21,200,000 2.34 = $49,608,000

The enterprise valuation range based on a sales multiple was from a high of $53,000,000 to a low of $45,156,000.

Equity Value Estimates:

Equity value = enterprise value interest-bearing debt

Since WestTek has interest-bearing debt of $12,000,000, this amount must be subtracted from the enterprise value estimates calculated above to provide equity value estimates.

Using EastTek: $50,880,000 - $12,000,000 = $38,880,000

Using SouthTek: $45,156,000 - $12,000,000 = $33,156,000

Using NorthTek: $53,000,000 - $12,000,000 = $41,000,000

Using average multiple: $49,608,000 - $12,000,000 = $37,608,000

The equity valuation range based on a sales multiple was from a high of $41,000,000 to a low of $33,156,000