Question: Tompkins Bank is trying to value Ithaca Beer Co. using comparable valuation techniques. ? Ithaca Beer's estimated EBITDA for the coming year is $11M and

Tompkins Bank is trying to value Ithaca Beer Co. using comparable valuation techniques. ?

Ithaca Beer's estimated EBITDA for the coming year is $11M and the median forward enterprise value to EBITDA ratio of comparable firms is 7.15. ?


The market value of Ithaca Beer's debt is $30M and it has no outstanding preferred stock and 1M shares of common stock.?


Estimate the value of common stock using the enterprise value to EBITDA ratio.?


Please show any formula's and/or calculations in explanation?

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