Question

Use the tables for the question(s) below. tions Pro Forma Income Statement for Ideko, 2010-2015 Year 2010 2011 2012 2013 2014
This Question: 2 pts 150 8 EBITDA 16,250 20,238 21,816 24,373 28,393 32,094 9 Depreciation (5,500) (5,450) (5,405) (6,865) (7
I can no Lasn Equivalents 2 Accounts Receivable 3 Inventories 4 Total Current Assets 5 Property, Plant, and Equipment 6 Goodw
Liabilities 8 Accounts Payable 4,654 5,532 6,648 7,879 9 ,110 10,448 9 Debt 100,000 100,000 100,000 115,000 120,000 120,000 1
0 0
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Answer #1

The formula to calculate the EBITDA multiple are shown below:

EBITDA multiple = Enterprise value/ EBITDA

Compute the enterprise value, using the equation as shown below:

Enterprise value = EBITDA multiple*EBITDA

                           = 8.5*32,094,000

                           = $272,799,000 or $272.799 million

Hence, the enterprise value for 2015 is $272.799 million.

Here,

EBITDA = Earnings before interest, tax, depreciation and amortization expenses.

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