After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 EJH Enterprises has EPS of $1.90, EBITDA of $295 million, $29 million in cash, $44 million in debt, and 105 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.) Highest price within both ranges, the P/E and the EVIEBITDA ranges, is $ (Round to two decimal places.)

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
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After researching the competitors of EJH Enterprises, you determine that most comparable firms have the
following valuation ratios:
Comp 1
Comp 2
Comp 3
Comp 4
EVEBITDA
12
11
12.5
10
P/E
19
18
20
17
EJH Enterprises has EPS of $1.90, EBITDA of $295 million, $29 million in cash, $44 million in debt, and 105
million shares outstanding. What range of prices is consistent with both sets of multiples?
The range of prices will be:
Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $
(Round to two decimal places.)
Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $
(Round to two decimal places.)
Transcribed Image Text:After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 2 Comp 3 Comp 4 EVEBITDA 12 11 12.5 10 P/E 19 18 20 17 EJH Enterprises has EPS of $1.90, EBITDA of $295 million, $29 million in cash, $44 million in debt, and 105 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.)
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