Question: Using the following table, please answer the question below Enterprise Equity Current Value Value Enterprise Value/EBITDA Equity Value / Net Income Company Stock Price (C$MM)

Using the following table, please answer the question below

Enterprise Equity

Current Value Value Enterprise Value/EBITDA Equity Value / Net Income

Company Stock Price (C$MM) (C$MM) LTM LFY + 1 LTM LFY + 1

Company A $11.45 $657 $542 12.3x 10.6x 18.7x 16.5x

Company B $11.36 $632 $520 12.1x 10.5x 18.3x 16.1x

Company C $10.32 $598 $534 11.6x 9.5x 17.9x 15.3x

You have the following information about the company "SudsandBuds" which you are trying to value:

(amounts in millions) LTM LFY +1

EBITDA $43 $50

Net Income $25 $30

In addition, you know that "SudsandBuds" has Net Debt of $80 million and 124 million shares outstanding. What is "SudsandBuds" worth on a per share basis, given the publicly traded comparable company analysis shown above? Please show all your work and round to at least 2 decimal points.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!