Question: Using the information in the table, answer the questions: Industry average EV to EBITDA multiple 6.5 x Company ABC data : EBITDA (normalized) 40m Market

Using the information in the table, answer the questions:

Industry average EV to EBITDA multiple

6.5 x

Company ABC data:

EBITDA (normalized)

40m

Market value of debt

4.8m

1. What is ABC company value? (use the market-based approach)

2. What is the ABC companys equity value?

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 Finance Questions!