Required: Develop a business valuation for Williams Company for 2022 using the following methods: (1) book value of equity, (2) market value of equity, (3) discounted cash flow (DCF), (4) enterprise value, and (5) all the multiples-based valuations for which there is an industry average multiplier. For the calculation of the DCF valuation, you may use the simplifying assumption that free cash flows will continue indefinitely at the amount in 2022. Answer is not complete. Book value of equity Market value of equity Discounted free cash flows Enterprise value Multiples-based valuation Earnings multiple Free cash flow multiple Sales multiple $ 1,350,000 7,312,500 146,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Williams Company is a manufacturer of auto parts having the following financial statements for 2021-2022. 

Required:
Develop a business valuation for Williams Company for 2022 using the following methods: (1) book value of equity, (2) market value of
equity, (3) discounted cash flow (DCF), (4) enterprise value, and (5) all the multiples-based valuations for which there is an industry
average multiplier. For the calculation of the DCF valuation, you may use the simplifying assumption that free cash flows will continue
indefinitely at the amount in 2022.
Answer is not complete.
Book value of equity
Market value of equity
Discounted free cash flows
Enterprise value
Multiples-based valuation
Earnings multiple
Free cash flow multiple
Sales multiple
$ 1,350,000
7,312,500
146,000
Transcribed Image Text:Required: Develop a business valuation for Williams Company for 2022 using the following methods: (1) book value of equity, (2) market value of equity, (3) discounted cash flow (DCF), (4) enterprise value, and (5) all the multiples-based valuations for which there is an industry average multiplier. For the calculation of the DCF valuation, you may use the simplifying assumption that free cash flows will continue indefinitely at the amount in 2022. Answer is not complete. Book value of equity Market value of equity Discounted free cash flows Enterprise value Multiples-based valuation Earnings multiple Free cash flow multiple Sales multiple $ 1,350,000 7,312,500 146,000
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