question archive Comparable Company & Precedent Transaction Calculations 8 Review Later [$/sh

Comparable Company & Precedent Transaction Calculations 8 Review Later [$/sh

Subject:FinancePrice:2.86 Bought3

Comparable Company & Precedent Transaction Calculations 8 Review Later [$/sh.] [MM] {$MM] (SMM) {$MM] {$MM] {$MM] Alibaba Group Holding Limited Share Price Shares Outstanding Market Cap Net Debt (Cash) NTM Revenue NTM EBITDA NTM Earnings $259.89 2,775 $721,195 ($157,714) $699,257 $205,663 $149,680 Given the previously calculated Enterprise Value, what is the NTM EV/EBITDA multiple for Alibaba Group Holdings Limited? 3.5x 2.7x 1.0x a 0.8x

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Enterprise value = Market Cap + Net Debt

= $721,195-$157,714 = $563,681

EV/ EBITDA = $563,681/ $205,663 = 2.7x

Hence, Option B is the answer