Hackworth Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $3 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 10. What is the estimated intrinsic value of Hackworth Co.’s stock per share?   Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm. Suppose you have the information given in the following table for Company X.   Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000   What is value of the entity multiple of Company X in Year 1?

Managerial Accounting
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Chapter16: Financial Statement Analysis
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Hackworth Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $3 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 10.
What is the estimated intrinsic value of Hackworth Co.’s stock per share?
 
Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm.
Suppose you have the information given in the following table for Company X.
 
Year 1
Year 2
EBITDA $7,650 $9,150
Total value of equity $76,500 $82,500
Total firm value $99,450 $132,000
 
What is value of the entity multiple of Company X in Year 1?
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