Multiples valuation should be forward looking, so start with Nvidia's 2024 projected Earnings Before Interest, Taxes, Depreciation
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Multiples valuation should be forward looking, so start with Nvidia's 2024 projected Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA, a standard cash flow measure) and compute its total Equity Value to EBITDA ratio. b. Compare this ratio with the ratios of the following group of chip makers: AMD (AMD, Equity/EBITDA of 70), Intel (INTC, Equity/EBITDA 13.9), and Qualcomm (QCOM, Equity/EBITDA 16.31). c. If you were to apply the average multiple from the comparison group to Nvidia's 2024 EBITDA, what stock price would that imply? (Take 2024 EBITDA x Avg Multiple as your new total Equity Value and divide by shares outstanding.)
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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