Question: Now using the information provided, solve A privately held firm called RoverX is considering an IPO and has hired you to estimate a pric per
Now using the information provided, solve
A privately held firm called RoverX is considering an IPO and has hired you to estimate a pric per share of its equity. The firm's sales are $700 million, EBITDA is $275 million and net income is $170 million. It currently has 35 million shares outstanding. The firm has $800 million in debt and cash balance of $150 million. The following financial data for two publicly traded comparable firms are available. All data in $millions Firm Market Cap Debt Cash EBITDA Sales A $3,195 $1,300 $400 $420 $900 B $1,342 $800 $300 $235 $550 Using the Price-to-Sales multiple, the price per share of RoverX is O $60 O $37 O $2097 O $55Step by Step Solution
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