Questions 4 Question 1. Consider the following information relating to three companies, which are similar to Tasty Foods Ltd Jumbo Foods Ltd Fresh Foods Ltd Natural Foods Ltd Price/EBDITA 20 19 Price/Book Value 3 4 22 22 Price/Sales 3 5 The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It may be assumed that the average ratios of the three companies are suitable for Tasty Foods. Estimate the value of Tasty Foods Ltd based on the above information.
Questions 4 Question 1. Consider the following information relating to three companies, which are similar to Tasty Foods Ltd Jumbo Foods Ltd Fresh Foods Ltd Natural Foods Ltd Price/EBDITA 20 19 Price/Book Value 3 4 22 22 Price/Sales 3 5 The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It may be assumed that the average ratios of the three companies are suitable for Tasty Foods. Estimate the value of Tasty Foods Ltd based on the above information.
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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Transcribed Image Text:Questions 4
Question 1. Consider the following information relating to three companies, which are similar
to Tasty Foods Ltd
Jumbo Foods Ltd
Fresh Foods Ltd
Natural Foods Ltd
Price/EBDITA
20
19
Price/Book Value
3
4
22
22
Price/Sales
3
5
The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It
may be assumed that the average ratios of the three companies are suitable for Tasty Foods.
Estimate the value of Tasty Foods Ltd based on the above information.
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