Question: Name Market Capitalization ( $ million ) Enterprise Value ( $ million ) P / E Price / Book Enterprise Value / Sales Enterprise Value

Name Market
Capitalization ($ million) Enterprise
Value ($ million) P/E Price/
Book Enterprise
Value/ Sales Enterprise
Value/ EBITDA
Gannet 635010,1637.360.731.45.04
New York Times 2423347218.092.641.107.21
McClatchy 67530619.761.681.405.64
Media General 326119214.890.391.317.65
Lee Enterprises 26717246.550.821.576.65
Average 11.331.251.356.44
Maximum +60%112%+16%+22%
Minimum -40%-69%-18%-19%
The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing firm (not shown) had sales of $620 million, EBITDA of $81 million, excess cash of $62 million, $11 million of debt, and 120 million shares outstanding. If the firm had an EPS of $0.41, what is the difference between the estimated share price of this firm if the average price-earnings ratio is used and the estimated share price if the average enterprise value/EBITDA ratio is used?

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