You are trying to estimate the stock price per share of a private firm. You find the
Fantastic news! We've Found the answer you've been seeking!
Question:
You are trying to estimate the stock price per share of a private firm. You find the following comparable firms, along with their P/E ratios and their enterprise multiples (EM):
Comp firm 1: P/E=17, EM=9
Comp firm 2: P/E=26, EM=10
If the private firm has earnings per share (EPS) of $4, EBITDA of $11 million, debt of $5 million, no excess cash, no preferred stock and 1.5 million shares of stock, what range of stock prices is consistent with both the P/E method and the EM method of comparable?
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date: