After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $1.80, EBITDA of $290 million, $30 million in cash, $40 million in debt, and 102 million shares outstanding. What range of prices is consistent with both sets of multiples? The lowest price within both ranges, the P/E and the EV/EBITDA ranges, is S Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Comp 1 Comp 2 Comp 3 12 11 12.5 19 18 20 EV/EBITDA P/E Print (Round to the nearest cent.) Done Comp 4 10 17 - X -

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 10P
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After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following
valuation ratios EJH Enterprises has EPS of $1.80, EBITDA of $290 million, $30 million in cash, $40 million
in debt, and 102 million shares outstanding. What range of prices is consistent with both sets of multiples?
The lowest price within both ranges, the P/E and the EV/EBITDA ranges, is S (Round to the nearest cent.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Comp 2
Comp 31
11
12.5
18
20
EV/EBITDA
P/E
Comp 1
12
19
Print
Done
Comp 4
10
17
-
X
Transcribed Image Text:After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios EJH Enterprises has EPS of $1.80, EBITDA of $290 million, $30 million in cash, $40 million in debt, and 102 million shares outstanding. What range of prices is consistent with both sets of multiples? The lowest price within both ranges, the P/E and the EV/EBITDA ranges, is S (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Comp 2 Comp 31 11 12.5 18 20 EV/EBITDA P/E Comp 1 12 19 Print Done Comp 4 10 17 - X
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