Question: Target Enterprise Value (EV) = Target Variable x Variable Multiplier Suppose an analysis of comparables yields an EBIT Multiplier of 7.2, EBITDA Multiplier of 5.5,

Target Enterprise Value (EV) = Target Variable x Variable Multiplier

Suppose an analysis of comparables yields an EBIT Multiplier of 7.2, EBITDA Multiplier of 5.5, Sales Multiplier of 1.15. Further suppose the target has EBIT of $30M, EBITDA of $40M and Sales of $175M. Compute the targets Enterprise Value using the EBIT, EBITDA and Sales Multipliers.

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