VIPSolutions2 afpeer 00000 [ evesmoa | evesT [ EVReverwe [PET PR . 1035 shims ~~ [ 108s | a4ss | 143 | 133 | 388 effmc 1 ve [46 | iss [ ses | ise 7Rmo [sos | e735 | wos | 53: | aes 8 2,39 offimF ~~] 726 [ sos | of [ 1436 | 369 10 520 8,50 165 FE 244 n 79 894 168 1527 378 12 13 14 [informationforfirmX | Amount] 15[Netincome | 51.023019 | 1. 17 18 tober | so08a37a] 20 21 2[Ch 1 5192260] 2 24[Reverve [511044845] 26 [Note:sharesoutstanding | 162.356) 2 27 2 2 £3 En 32 23 [Fill in the following table. sal Toegmma lever] eReene IPE 78 Whats the estimated share price of Firm X based on the average of 38 | relevant peer multiples? Whatis the estimated share price of Firm X based on the median of 36 [relevant peer multiples?
Question:
2
afpeer 00000 [ evesmoa | evesT [ EVReverwe [PET PR
. 1035
shims ~~ [ 108s | a4ss | 143 | 133 | 388
effmc 1 ve [46 | iss [ ses | ise
7Rmo [sos | e735 | wos | 53: | aes
8 2,39
offimF ~~] 726 [ sos | of [ 1436 | 369
10 520 8,50 165 FE 244
n 79 894 168 1527 378
12
13
14 [informationforfirmX | Amount]
15[Netincome | 51.023019 |
1.
17
18
tober | so08a37a]
20
21
2[Ch 1 5192260]
2
24[Reverve [511044845]
26 [Note:sharesoutstanding | 162.356)
2
27
2
2
£3
En
32
23 [Fill in the following table.
sal Toegmma lever] eReene IPE 78
Whats the estimated share price of
Firm X based on the average of
38 | relevant peer multiples?
Whatis the estimated share price of
Firm X based on the median of
36 [relevant peer multiples?
This is AI generated Response.
Asked by: Asmita sharma
Created at: 2025-06-14 12:10:19
Asked by: Asmita sharma
Created at: 2025-06-14 12:10:19
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Let's break down the steps to estimate the share price of Firm X using the peer multiples provided:
### Step 1: Collect Relevant Data
#### Average Peer Multiples (from the table)
- EV/EBITDA: 7.93
- EV/EBIT: 8.94
- EV/Revenue: 1.68
- P/E: 15.27
- P/B: 3.79
#### Firm X Data (from the table)
- EBITDA: $2,862,750
- EBIT: Revenue - Cost of Goods Sold - SG&A = $11,044,845 - $3,579,691 - $4,082,716 = $3,382,438
- Revenue: $11,044,845
- Net Income: $1,023,019
- Book Value (Equity): Long-term assets + Current assets - Long-term liabilities - Current liabilities = $4,031,869 + $936,704 - $1,495,998 - $673,406 = $2,799,169
- Shares Outstanding: 182,356
#### Debt and Cash (for Enterprise Value calculations)
- Debt: $908,374
- Cash: $192,260
---
### Step 2: Calculate Firm Value Using Each Multiple
#### a) **EV/EBITDA**
- Implied EV = EBITDA × Average EV/EBITDA = $2,862,750 × 7.93 = $22,702,638
- Equity Value = EV - Debt + Cash = $22,702,638 - $908,374 + $192,260 = $21,986,524
- Share Price = Equity Value / Shares Outstanding = $21,986,524 / 182,356 = **$120.61**
#### b) **EV/EBIT**
- EBIT = $3,382,438
- Implied EV = EBIT × Average EV/EBIT = $3,382,438 × 8.94 = $30,234,991
- Equity Value = EV - Debt + Cash = $30,234,991 - $908,374 + $192,260 = $29,518,877
- Share Price = $29,518,877 / 182,356 = **$161.88**
#### c) **EV/Revenue**
- Implied EV = Revenue × Average EV/Revenue = $11,044,845 × 1.68 = $18,646,345
- Equity Value = $18,646,345 - $908,374 + $192,260 = $17,930,231
- Share Price = $17,930,231 / 182,356 = **$98.33**
#### d) **P/E**
- Equity Value = Net Income × Average P/E = $1,023,019 × 15.27 = $15,618,546
- Share Price = $15,618,546 / 182,356 = **$85.65**
#### e) **P/B**
- Equity Value = Book Value × Average P/B = $2,799,169 × 3.79 = $10,616,827
- Share Price = $10,616,827 / 182,356 = **$58.21**
---
### Step 3: Median of Peer Multiples
Median values (approximate from your data):
- EV/EBITDA: 8.03
- EV/EBIT: 8.06
- EV/Revenue: 1.65
- P/E: 15.68
- P/B: 3.88
Repeat the above calculations using median values.
---
### Step 4: Fill in the Table
**Average Peer Multiples:**
| Method | Estimated Share Price |
|-------------|----------------------|
| EV/EBITDA | $120.61 |
| EV/EBIT | $161.88 |
| EV/Revenue | $98.33 |
| P/E | $85.65 |
| P/B | $58.21 |
**Median Peer Multiples:**
| Method | Estimated Share Price |
|-------------|----------------------|
| EV/EBITDA | $124.09 | (2,862,750 × 8.03 - 908,374 + 192,260) / 182,356
| EV/EBIT | $149.36 | (3,382,438 × 8.06 - 908,374 + 192,260) / 182,356
| EV/Revenue | $97.37 | (11,044,845 × 1.65 - 908,374 + 192,260) / 182,356
| P/E | $87.97 | (1,023,019 × 15.68) / 182,356
| P/B | $59.64 | (2,799,169 × 3.88) / 182,356
---
**Would you like to see the detailed calculations for the median as well?**
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