After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios (see MyLab Finance for the data in Excel format): Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 EJH Enterprises has earnings per share of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios (see MyLab Finance for the data in Excel format): Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 EJH Enterprises has earnings per share of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios (see MyLab Finance for the data in Excel format): EJH Enterprises has earnings per share of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?
Transcribed Image Text:3. Problem 11
After researching the competitors of EJH Enterprises, you determine that most comparable
firms have the following valuation ratios (see MyLab Finance for the data in Excel format):
Comp 1
Comp 2
Comp 3
Comp 4
EV/EBITDA
12
11
12.5
10
P/E
19
18
20
17
EJH Enterprises has earnings per share of $2, EBITDA of $300 million, $30 million in
cash, $40 million in debt and 100 million shares outstanding. What range of prices is
consistent with both sets of multiples?
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