
Assuming multiple is based on leading FCFF
Enterprise Value=EV/FCFF multiple*FCFF=40*15=600 million
if u answer is 150 million, it’s incorrect answer Example 5.12: A company had total revenues...
A company had total revenues of $129 million, operating profit margin of 19%, and depreciation and amortization expense of $15 million over the trailing twelve months. The company currently has $39 million in total debt and $13 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $543 million, what is its EV/EBITDA ratio? Round to one decimal place.
A company had total revenues of $114 million, operating profit margin of 22%, and depreciation and amortization expense of $11 million over the trailing twelve months. The company currently has $44 million in total debt and $11 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $571 million, what is its EV/EBITDA ratio? Round to one decimal place.
A company had total revenues of $104 million, operating profit margin of 24%, and depreciation and amortization expense of $9 million over the trailing twelve months. The company currently has $49 million in total debt and $10 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $593 million, what is its EV/EBITDA ratio? Round to one decimal place.
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Example 5.12: A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently...
A company has generated revenues of $150 million over the last twelve months. Operating profit margin is 35%. Depreciation and amortization expenses are $20 million. Market capitalization (value of equity) is $250 million, total debt is $60 million, and cash is $10 million. What is the company's EV/EBITDA multiple? Round to one decimal place.
You are in the middle of valuing a stock using the DCF method. According to your projections, the company is expected to generate free cash flows of $51 million in 4 years, after which FCFF is expected to grow at a stable rate in perpetuity. Instead of using the perpetuity growth method, you decide to estimate the company's terminal value using the exit multiple approach. Your analysis of comparable companies reveal an average EV/FCFF ratio of 13.3. What is your...
You are in the middle of valuing a stock using the DCF method. According to your projections, the company is expected to generate free cash flows of $71 million in 4 years, after which FCFF is expected to grow at a stable rate in perpetuity. Instead of using the perpetuity growth method, you decide to estimate the company's terminal value using the exit multiple approach. Your analysis of comparable companies reveal an average EV/FCFF ratio of 10.3. What is your...
You are in the middle of valuing a stock using the DCF method. According to your projections, the company is expected to generate free cash flows of $51 million in 4 years, after which FCFF is expected to grow at a stable rate in perpetuity. Instead of using the perpetuity growth method, you decide to estimate the company's terminal value using the exit multiple approach. Your analysis of comparable companies reveal an average EV/FCFF ratio of 13.3. What is your...
A company is projected to generate a free cash flow of $100 million next year (year 1) and $120 million in two years (year 2). After that it is projected grow at a steady rate in perpetuity. The company's cost of capital is 10%. It has $400 million of debt and $40 million in cash. There are 60 million shares outstanding. Comparable companies trade at an average EV/FCFF multiple of 6.9. Using the exit multiple method for terminal value and...
1.A. What's the FCFF of a company with total revenues of $900 million, operating profit margin of 25%, tax rate of 35% and reinvestment rate of 20%? Answer in millions, rounded to one decimal place. 1.B. You are valuing a company with free cash flows expected to grow at a stable 1.5% rate in perpetuity. Analysts are forecasting free cash flows of $50 million for next year (FCFF1). The company has $40 million of debt and $5 million of cash....