Question: Using the multiples approach, estimate a value for ACMEs stock price using information from the comparable firms. You can assume no excess cash exists for

  1. Using the multiples approach, estimate a value for ACMEs stock price using information from the comparable firms. You can assume no excess cash exists for ACME or the comparable firms. Estimate a value based on the Enterprise Value/Sales multiple and the Enterprise Value/EBITDA.

Enterprise value /Sales per share estimate for ACME: $__________

Enterprise value /EBITDA per share estimate for ACME: $__________

Question #1 ACME Inc.
Comparable Firms, End of 2020 (in millions of dollars except share price)
Share Price Shares Outstanding Total Debt Sales EBITDA
(millions)
ACME Inc. 25.00 38.3 235 1,660 204
Comp #1 61.80 8.2 101 984 48
Comp #2 53.28 10.2 197 1,050 122
Comp #3 24.92 9.7 0 453 30
Comp #4 27.76 50.9 742 1,420 359
Comp #5 74.34 27.3 0 1,090 156
Comp #6 37.65 44.8 250 1,350 240
Comp #7 34.97 31.1 215 1,950 189

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