Question: what is the equity valuation using the EBITDA multiple methodology 300- Equity Valuation Exercise s Enterprises (ticker: BE) is engaged in the business of making
300- Equity Valuation Exercise s Enterprises (ticker: BE) is engaged in the business of making athletic shoes a.lt pays a dividend of $1.50 quarter, some people believe it will stay the same and others believe it will grow by 4% per year. b. Other shoe manufacturers trade in the market for 8 0x EBITDA c. Other similar companies also trade with a PE multiple of 18x d.BE has $100mm in short term debt and $50mm in long term debt; it pays interest at an average annual rate of 4% e. Assume a discount rate of 9% f. BE reported $900 million in Revenue and Net Income of $25mm in its most recent year g. On its balance sheet, BE has $75 million of Accounts Receivable, $100 million of inventory, $25 million of Accounts Payable, and S150 million of Fixed Assets (PP&E) h. BE's fixed assets were recently appraised at a value of $300mm. i. It reported $5mm in depreciation last year j. BE trades on NASDAQ and closed yesterday at $90 k. BE has 15 million shares authorized; it has 1 million treasury shares; it has 11 million issued shares LBE has a total tax rate of 25%. , Dividend Growing Book Valuc Liquidation value EBITDA Market Value PE Method Dividend method
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