hard · Principles of Finance
An analyst is valuing a target firm with LTM EBITDA of $40 million, total debt of $80 million, and a cash balance of $20 million. A set of four comparable companies has current EV/EBITDA multiples of [9.5, 11.0, 10.5, 12.0].
If the target has 10 million shares outstanding, what is the implied equity value per share using the median multiple?
- $35.00
- $63.00
- $37.00
- $33.00
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