Question

In: Finance

You are trying to value a company which had revenues of $29 million over the last...

You are trying to value a company which had revenues of $29 million over the last twelve months. Depreciation and amortization expenses were $7 million. Operating margin is 33.5%. It has $23 million of debt, $6 million in cash, and 11 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 13. What is the company's share price using relative valuation? Round to one decimal place.

Solutions

Expert Solution

What is the company's share price using relative valuation?

=((29*33.5%+7)*13-23+6)/11
=18.20863636


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