question archive Assuming that comparable firms have following ratios: median EV/CF = 12 median P/BV = 8 median P/E = 12 Calculate range for expected price per Share for Allyson and Backer Corporation, if it has CF = 300$, Book Value = 220$, NI = 140$, Debt = 2000$, Number of shares = 500
Assuming that comparable firms have following ratios: median EV/CF = 12 median P/BV = 8 median P/E = 12 Calculate range for expected price per Share for Allyson and Backer Corporation, if it has CF = 300$, Book Value = 220$, NI = 140$, Debt = 2000$, Number of shares = 500
Subject:FinancePrice:2.86 Bought3
Assuming that comparable firms have following ratios:
median EV/CF = 12
median P/BV = 8
median P/E = 12
Calculate range for expected price per Share for Allyson and Backer Corporation, if it has CF = 300$, Book Value = 220$, NI = 140$, Debt = 2000$, Number of shares = 500.
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Based on EV/CF
Price per share=(12*300-2000)/500=3.20
Based on P/BV
Price per share=8*220/500=3.52
Based on P/E
Price per share=12*140/500=3.36
Range is 3.20 to 3.52
