You are trying to value a company which had revenues of $43 million over the last twelve months. Depreciation and amortization expenses were $5 million. Operating margin is 39.2%. It has $32 million of debt, $7 million in cash, and 9 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 23. How much is each share worth using the relative valuation method? O a. $53.1 O b. $31.7 O c. $26.4 O d. $18.6 e. $20.6 O f. $18.0 O g. $38.6 O h. $34.6

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
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You are trying to value a company which had revenues of $43 million over the last twelve months. Depreciation and amortization expenses were $5 million.
Operating margin is 39.2%. It has $32 million of debt, $7 million in cash, and 9 million shares outstanding. Comparable companies are trading at an average
trailing EV/EBITDA multiple of 23. How much is each share worth using the relative valuation method?
O a. $53.1
O b. $31.7
O c. $26.4
O d. $18.6
O e. $20.6
O f. $18.0
g. $38.6
h. $34.6
Transcribed Image Text:You are trying to value a company which had revenues of $43 million over the last twelve months. Depreciation and amortization expenses were $5 million. Operating margin is 39.2%. It has $32 million of debt, $7 million in cash, and 9 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 23. How much is each share worth using the relative valuation method? O a. $53.1 O b. $31.7 O c. $26.4 O d. $18.6 O e. $20.6 O f. $18.0 g. $38.6 h. $34.6
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