Question: Recall that for Zilla Ltd. from question 1, the current (2018) Invested Capital was $500 thousand. Ghida has deemed the necessary calculations for the Residual
Recall that for Zilla Ltd. from question 1, the current (2018) Invested Capital was $500 thousand. Ghida has deemed the necessary calculations for the Residual Income model to be too complicated for her, and has chosen instead to use the Market to Book ratio to estimate the Enterprise Value for Zilla Ltd. She has gathered the following information from comparable companies: Company Mothballs Inc Roadworks Corp Mechatronics Ltd.

She has gathered the following information from comparable companies: Company Enterprise Value (Sthousand) Invested Capital (Sthousand) 1,452 2,557 Mothbals inc. 1,710 Roadworks Corp. Mechatronics Ltd. 3,150 82 83 If Ghida uses the median Market to Book ratio for these three companies to estimate the Enterprise Value of Zila Ltd., what is the estimated value?
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