Question: The reported asks Tim one last question about X corps valuation and why not use the EV or enterprise value approach as it is a

The reported asks Tim one last question about X corps valuation and why not use the EV or enterprise value approach as it is a more accurate way of purchasing a company because if you buy a firm you assume its debt as well. Tim replies that his CFO and CIO are looking into that valuation metric. The reported throws out some number that their Bloomberg analyst put together for X corp:

X corps share price $20

# shares outstanding 10 million

Market value of debt = 100 miliion

Cash 60 million

EBIT 30 million

Depreciation 10 million

The EV and the EV/EBITDA is

240 and 6x
300 and 7x
50 and 1x
240 and 8x

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