The reported EV/EBITDA of a newspaper publishing firm is 10x. The firm has sales revenues of $780 million, EBITDA of $84 million, excess cash (i.e., marketable securities) of $60 million, $10 million of debt and seeks to issue 15 million shares of stock. What is your estimate of the firm’s share price?
The reported EV/EBITDA of a newspaper publishing firm is 10x. The firm has sales revenues of $780 million, EBITDA of $84 million, excess cash (i.e., marketable securities) of $60 million, $10 million of debt and seeks to issue 15 million shares of stock. What is your estimate of the firm’s share price?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 3P: Winston Watch’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance...
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The reported EV/EBITDA of a newspaper publishing firm is 10x. The firm has sales revenues of $780 million, EBITDA of $84 million, excess cash (i.e., marketable securities) of $60 million, $10 million of debt and seeks to issue 15 million shares of stock. What is your estimate of the firm’s share price?
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Suppose that the newspaper publishing company described above expected net earnings is $85 million and the firm is going public and will issue 15 million shares of stock. What is the price of the IPO using the P/E ratio if the forward P/E of comparable newspapers is 15x?
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