You are trying to value a company using the relative valuation approach. Suppose comparable companies are...

You are trying to value a company using the relative valuation approach. Suppose comparable companies are trading at an average trailing EV/EBITDA multiple of 5.7. The company you are valuing generated an EBITDA of $271 million over the last twelve months, has $386 million of debt, $51 million in cash, and 13 million shares outstanding. What is the company's implied share price? Round to one decimal place.

Expert Solution


Multiplier	5.7
EV/EBITDA	5.7
EBITDA	$ 271.00	million
Enterprise value	5.7*271
Enterprise value	$ 1,544.70	million
Add non-operating assets, cash	51	million
Total value	$ 1,595.70	million
Less debt value	$ (386.00)	million
Value of shares	$ 1,209.70	million
No of shares	13	million
Share price	Value of shares/No of shares
Share price	1209.7/13
Share price	$ 93.1

jeff jeffy answered 2 years ago

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