medium · Investment Banking implied-share-price

When valuing a company for an IPO, an 'IPO Discount' of 15% is applied to the implied enterprise value of $4.0B derived from peer multiples.

If the company has $500M of net debt, what is the target equity value at the IPO?

  1. $2.4B
  2. $2.9B
  3. $3.4B
  4. $3.5B

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