You are trying to value a company which had revenues of $29 million over the last twelve months. Depreciation and amortization expenses were $5 million. Operating margin is 39.7%. It has $27 million of debt, $4 million in cash, and 5 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 11. How much is each share worth using the relative valuation method? a. $53.1 b. $31.7 c. $26.4 O d. $18.6 O e. $20.6 O f. $18.0 O g. $38.6

You are trying to value a company which had revenues of $29 million over the last twelve months. Depreciation and amortization expenses were $5 million. Operating margin is 39.7%. It has $27 million of debt, $4 million in cash, and 5 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 11. How much is each share worth using the relative valuation method? a. $53.1 b. $31.7 c. $26.4 O d. $18.6 O e. $20.6 O f. $18.0 O g. $38.6

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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