CSH has EBITDA of $ 6 million. You feel that an appropriate EV/EBITDA ratio for CSH...

Question

Question

CSH has EBITDA of $ 6 million. You feel that an appropriate EV/EBITDA ratio for CSH...

CSH has EBITDA of $ 6 million. You feel that an appropriate EV/EBITDA ratio for CSH is 10. CSH has $ 6 million in debt, $ 2 million in cash, and 775,000 shares outstanding. What is your estimate of CSH's stock price?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Using the EV/EBITDA we can calculate the enterprise value and from that price of share can be calculated

Enterprise value	EV/EBITDA ratio*EBITDA
Enterprise value	10*$6 million
Enterprise value	$60	million

Stock price	Enterprise value + Cash - Debt/No of shares outstanding
Stock price	(60,000,000+2,000,000-6,000,000)/775,000
Stock price	$72.26

Add a comment

Answer 2

Similar Homework Help Questions

CSH has EBITDA of $4 million. You feel that an appropriate EV/EBITDA ratio for CSH is...

CSH has EBITDA of $4 million. You feel that an appropriate EV/EBITDA ratio for CSH is 7. CSH has $6 million in debt,$4 million in cash, and 775,000 shares outstanding. What is your estimate of CSH's stock price? The estimate of CSH's stock price is? (Round to the nearest cent.)
CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is...

CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 10. CSH has $7 million in debt, $4 million in cash, and 750,000 shares outstanding. What is your estimate of CSH's stock price? The estimate of CSH's stock price is . (Round to the nearest cent.)
CSH has EBITDA of $ 5 million. You feel that an appropriate EV/EBITDA ratio for CSH...

CSH has EBITDA of $ 5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 99. CSH has $ 10 million in debt, $ 2 million in cash, and 800,000 shares outstanding. What is your estimate of CSH's stock price?

10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity...

10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $3.25 billion, price/earnings ratio = 22, common shares outstanding = 180 million, and market/book ratio = 1.6. The firm's market value of total debt is $6 billion, the firm has cash and equivalents totaling $250 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not...
Please show any and all work or sub-calculations. A firm's EV / EBITDA ratio has most...

Please show any and all work or sub-calculations. A firm's EV / EBITDA ratio has most recently (2018) been 7.8 but has grown as indicated in the below table since 2014. EBITDA over that same timeframe is given in the table also. An analyst wants to estimate the target price of the stock one year in the future. The analyst estimates the company's LT Debt in one year to be $1,400,000 and cash at $75,000. If 50,000 shares of stock...
The average EV/EBITDA ratio of the competitor firms to Jorge's Junk Removal is 6.5. Jorge's Junk...

The average EV/EBITDA ratio of the competitor firms to Jorge's Junk Removal is 6.5. Jorge's Junk Removal has an EBIT of $400 million, depreciation of $100 million, no amortization expense, $500 million in debt, $40 million in cash, and 25 million outstanding shares. What should the price of a share of Jorge's Junk Removal be? A) $59.60 B) $131.60 C) $32.50 D) $85.60 E) $111.60

A company has $20 million in assets and a total asset turnover ratio of 2. Its...

A company has $20 million in assets and a total asset turnover ratio of 2. Its costs are equal to 30% of sales. The firm has ROE of 20% and a NPM of 8%. Assume the firm doesn’t have any preferred stock. If the firm has $2 million in cash and Market Value of Equity to Book Value of Equity (M/B) is 3.5, what is its EV/EBITDA? Now assume that the industry average for EV/EBITDA is 3. If the firm...
FFDP Corp. has yearly sales of $29.6 million and costs of $15.1 million. The company’s balance...

FFDP Corp. has yearly sales of $29.6 million and costs of $15.1 million. The company’s balance sheet shows debt of $55.6 million and cash of $39.6 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 9.1. What is the company’s enterprise value? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) What is the stock price per share? (Do not round intermediate calculations...
If a firm has an EV of $1,840 million and EBITDA of $377 million, what is...

If a firm has an EV of $1,840 million and EBITDA of $377 million, what is its EV ratio?

Suppose Rocky Brands has earnings per share of $2.31 and EBITDA of $30.4 million. The firm...

Suppose Rocky Brands has earnings per share of $2.31 and EBITDA of $30.4 million. The firm also has 4.8 million shares outstanding and debt of $115 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a P/E of 13.1 and an enterprise value to EBITDA multiple of 7.1, estimate the value of Rocky Brands stock using both multiples. Which estimate is...

CSH has EBITDA of $ 6 million. You feel that an appropriate EV/EBITDA ratio for CSH...

Homework Answers

Add Answer to:
CSH has EBITDA of $ 6 million. You feel that an appropriate EV/EBITDA ratio for CSH...

Post as a guest

Earn Coins

CSH has EBITDA of $4 million. You feel that an appropriate EV/EBITDA ratio for CSH is...

CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is...

CSH has EBITDA of $ 5 million. You feel that an appropriate EV/EBITDA ratio for CSH...

10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity...

Please show any and all work or sub-calculations. A firm's EV / EBITDA ratio has most...

The average EV/EBITDA ratio of the competitor firms to Jorge's Junk Removal is 6.5. Jorge's Junk...

A company has $20 million in assets and a total asset turnover ratio of 2. Its...

FFDP Corp. has yearly sales of $29.6 million and costs of $15.1 million. The company’s balance...

If a firm has an EV of $1,840 million and EBITDA of $377 million, what is...

Suppose Rocky Brands has earnings per share of $2.31 and EBITDA of $30.4 million. The firm...

CSH has EBITDA of $ 6 million. You feel that an appropriate​ EV/EBITDA ratio for CSH...

Homework Answers