Question: You are comparing Vantex Corp with 3 comparable firms: X, Y and Z. Vantex has EBITDA of $10 million, Debt of $15 million, Cash
You are comparing Vantex Corp with 3 comparable firms: X, Y and Z. Vantex has EBITDA of $10 million, Debt of $15 million, Cash of $7 million and 2 million shares of stock. X, Y and Z have enterprise multiples of 10, 12 and 14, respectively. Using the data from these comparable (comp) firms, what would be your highest estimate of the stock price of Vantex?
Step by Step Solution
★★★★★
3.46 Rating (156 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Enterprise Value of Vantex EBITDA x Enterprise Multiple 10000000 x 14 140000000 ... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
