Prior to Box's IPO, it reported $124,192,000 of sales, $34,000,000 of debt, and $108,851,000 of cash....

Question 1

Question

Prior to Box's IPO, it reported $124,192,000 of sales, $34,000,000 of debt, and $108,851,000 of cash. The chart below lists transaction multiples for similar companies. What was Box's implied market cap?

Deal Size($bn) Date 13-Dec 13-Jul 12-Dec Target Responsys ExactTarget Eloqua Kenexa Ariba Taleo Acquirer Oracle Salesforce Or

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Answer #1

From the given data:
	Calculation	Result
Average EV/Sales =	(8.0x+8.6x+9.7x+4.1x+8.2x+6.0x)/6	7.433333333
Box's EV =	(Average EV/Sales)(Box's Sales)*	$923160533.3

Enterprise Value =	Debt+Equity(Market Cap)-Cash

Therefore,
Market Cap	EV-Debt+Cash
Box's Market Cap=	($923160533.3-$34000000+$108851000)
Box's Market Cap=	$99,80,11,533.33

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Prior to Box's IPO, it reported $124,192,000 of sales, $34,000,000 of debt, and $108,851,000 of cash....

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YOUR COMPANY Income Statement For the year ended January 31, 2019 Sales revenue (net) 55,432 Cost...

Prior to Box's IPO, it reported $124,192,000 of sales, $34,000,000 of debt, and $108,851,000 of cash....

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YOUR COMPANY Income Statement For the year ended January 31, 2019 Sales revenue (net) 55,432 Cost...

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Prior to Box's IPO, it reported $124,192,000 of sales, $34,000,000 of debt, and $108,851,000 of cash....