Mr. Hooper Stevens has gathered the following information on Sirius XM Holdings Inc.: Sirius XM Holdings Inc. (in millions) Average of Multiples of Comparables Earnings $ 17.9 P/E of comparables 16.8 Cash flow $ 22.3 P/CF of comparables 23.5 Book value of equity $ 35.2 P/BV of comparables 4.2 Sales $ 107.1 P/S of comparables 5.4 Number of shares outstanding: 12667709 What is the value of the Company’s shares (per share), giving the cash flow multiple and P/S multiple 30% and the other methods 20 % each?
Mr. Hooper Stevens has gathered the following information on Sirius XM Holdings Inc.: Sirius XM Holdings Inc. (in millions) Average of Multiples of Comparables Earnings $ 17.9 P/E of comparables 16.8 Cash flow $ 22.3 P/CF of comparables 23.5 Book value of equity $ 35.2 P/BV of comparables 4.2 Sales $ 107.1 P/S of comparables 5.4 Number of shares outstanding: 12667709 What is the value of the Company’s shares (per share), giving the cash flow multiple and P/S multiple 30% and the other methods 20 % each?
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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Question
Mr. Hooper Stevens has gathered the following information on Sirius XM Holdings Inc.:
|
Sirius XM Holdings Inc. (in millions) |
|
Average of Multiples of Comparables |
|||
|
Earnings |
$ 17.9 |
|
P/E of comparables |
16.8 |
|
|
Cash flow |
$ 22.3 |
|
P/CF of comparables |
23.5 |
|
|
Book value of equity |
$ 35.2 |
|
P/BV of comparables |
4.2 |
|
|
Sales |
$ 107.1 |
|
P/S of comparables |
5.4 |
|
Number of shares outstanding: 12667709
What is the value of the Company’s shares (per share), giving the cash flow multiple and P/S multiple 30% and the other methods 20 % each?
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