EV/SALES multiple preferred to value a company if: A.operating margin of comparable companies aren’t similar B....
EV/SALES multiple preferred to value a company if:
A.operating margin of comparable companies aren’t similar
B. profitability of company is significantly higher than its peers
C. profitability of company is significantly higher than its peers.
D. company has negative profitability
Homework Answers
EV/SALES multiple preferred to value a company if:
D. company has negative profitability
The companies which run unprofitably can be valued using EV/Sales.
It is the ratio where the enterprise value is compared with the sales of the company.
If this ratio is higher, it’s not a good bet for investors to invest and If this ratio is lower, then it is considered to be a great investment opportunity for investors.
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EV/SALES multiple preferred to value a company if:
A.operating margin of comparable companies aren’t similar
B....
Companies a & b both have revenue of $1000 and EV/Revenue multiple of 1.5x. Company A...
Companies a & b both have revenue of $1000 and EV/Revenue multiple of 1.5x. Company A has an EV/EBITDA of 6.0x and company B has an EBITDA margin of 15%. What is company B's EBITDA multiple?
A company with 0 net debt has sales of 10m, EBIT of 2m And net income...
A company with 0 net debt has sales of 10m, EBIT of 2m And net income of 1.8m. Harmonic mean of comparable companies multiples is 1 for EV/Sales, 5 for EV/EBIT and 10 for P/E. What can be the explanations to the high P/E ratio of the peers? A. Comparable companies face low corporate income tax rates. B. are more leveraged C.have lower growth prospects D. ALL
ABC company wants to acquire XYZ. XYZ forecated the the follwoing: EV Sales EBITDA EV/Sales EV/EBITDA...
ABC company wants to acquire XYZ. XYZ forecated the the follwoing: EV Sales EBITDA EV/Sales EV/EBITDA Year ($M) ($M) ($M) x x 2018 $ 186,196,400 $98,600,000 $13,700,000 1.9 13.6 2019 $ 186,196,400 $112,200,000 $17,500,000 1.7 10.6 2020 $ 186,196,400 $150,100,000 $19,000,000 1.2 9.8 ABC Company wants to compare XYZ with its peers. EV/Sales EV/EBITDA Total Debt Company x x to EV A 2.92 9.88 0.11 B 1.15 8.89 0.25 C 3.52 14.52 0.22 D 4.06 15.99 0.18 Average Median Is...
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Please help me do this if you know, thank you very much and please step by step that makes me bet...
Please help me do this if you know, thank you very much and
please step by step that makes me better understand.
1. Valuation of Firms The private equity firm Greylock Group LLC is looking to sell a stake in the automotive manufacturer VRT Automotive Co, a relatively new entrant in the auto parts manu- facturing industry, via an initial public offering (IPO). Greylock acquired its stake in VRT several years ago and has been able to improve the efficiency...
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Below are five comparable companies that compete in the Widget industry: Company V, Company W Company...
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Below are five comparable companies that compete in the Widget industry: Company V, Company W, Company...
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ow are five comparable companies that compete in the Widget industry: Compony company. Use the financial...
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Company A and Company B are similar companies operating in the same industry. Initially, both Company...
Company A and Company B are similar companies operating in the
same industry.
Initially, both Company A and Company B have an enterprise value
of $400 million – that is to say, the value of the operating
business is $400 million. Note that the enterprise value is the
same as the market value of equity (Share price x number of shares
outstanding = $400 million) for Company A and different from market
value of equity for Company B.
Company A...
Please help me do this if you know, thank you very much and
please step by step that makes me better understand.
1. Valuation of Firms The private equity firm Greylock Group LLC is looking to sell a stake in the automotive manufacturer VRT Automotive Co, a relatively new entrant in the auto parts manu- facturing industry, via an initial public offering (IPO). Greylock acquired its stake in VRT several years ago and has been able to improve the efficiency...
Below are five comparable companies that compete in the Widget industry: Company V, Company W Company X, Company Y, and Company Z. Assume the greater the assets on the balance sheet, the larger the company. Use the financial statement information in the table below to help answer questions 1-6 Debt/Equity Total Aspets Tax Rate Net Income Company V Company W Company X 060 4.0000 100 1. Compared to larger companies in the widget industry, smaller companies in the Widget industry...
Below are five comparable companies that compete in the Widget industry: Company V, Company W, Company X, Company Y, and Company Z. Assume the greater the assets on the balance sheet, the larger the company. Use the financial statement information in the table below to help answer questions 14-17. Company V Company W Company X Company Y Company Z Debt/Equity 0.5385 3.0000 0 .5625 0.4925 4.0000 YTM 8.0% 9.0% 6.0% 6.0% 11.0% Total Assets 100 1060 10001 9701 100 Tax...
ow are five comparable companies that compete in the Widget industry: Compony company. Use the financial statement information in the table below to help answer quest ompany X, Company Y, and Company Z. Assume the greater the assets on the balance sheet, the larger the Debt/Equity 0.5385 3.0000 0.5625 0.4925 YTM Total Assets Tax Rate Net Income 80% 9.0% 6.0% 6.0% 30.0% 35.0% 1060 1000 650 30.0% 100 1. Compared to larger companies in the Widget industry, smaller companies in...
Company A and Company B are similar companies operating in the
same industry.
Initially, both Company A and Company B have an enterprise value
of $400 million – that is to say, the value of the operating
business is $400 million. Note that the enterprise value is the
same as the market value of equity (Share price x number of shares
outstanding = $400 million) for Company A and different from market
value of equity for Company B.
Company A...
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