Zmart, an Australian food supermarket chain, has earnings per share (EPS) of $1.50, EBITDA of $40.7 million
Fantastic news! We've Found the answer you've been seeking!
Question:
Zmart, an Australian food supermarket chain, has earnings per share (EPS) of $1.50, EBITDA of $40.7 million and 9.4 million shares outstanding. Zmart also has debt of $95million. Ymart is also an Australian food supermarket chain that competes directly with Zmart. Ymart has no debt, price to EPS (P/E) multiple of 10.3, and enterprise value to EBITDA (EV/EBITDA) multiple of 7.9.
Using Ymart's multiples, estimate:
a) Zmart's enterprise value
b) The market value of Zmart's equity
c) Zmart's share price
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date: