Name

Market Capitalization ($ million)

Enterprise Value ($ million)

P/E

Price/ Revenue

Enterprise Value/ Sales

Enterprise Value/ EBITDA

Gannet

6350

10,163

7.36

0.73

1.4

5.04

New York Times

2423

3472

18.09

2.64

1.10

7.21

McClatchy

675

3061

9.76

1.68

1.40

5.64

Media General

326

1192

14.89

0.39

1.31

7.65

Lee Enterprises

267

1724

6.55

0.82

1.57

6.65

Use the table above to complete the next 2 questions.

13. 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 revenues of $780 million, EBITDA of $84 million, excess cash (i.e., marketable securities) of $60 million, $10 million of debt and seeks to issue 15 million shares of stock. If the price/revenue multiple for comparable businesses is used, what is your estimate of the firm's share price? SHOW YOUR WORK.