question archive Your firm has outstanding debt equal to $278 million, cash holdings equal to $87 million, and 26 million shares outstanding
Your firm has outstanding debt equal to $278 million, cash holdings equal to $87 million, and 26 million shares outstanding
Subject:FinancePrice: Bought3
Your firm has outstanding debt equal to $278 million, cash holdings equal to $87 million, and 26 million shares outstanding.
Your firm is currently privately held, and you would like to use information from publicly traded comparables to estimate a price for your stock ($ per share). Your firm's expected 2021 EBITDA is $52 million. The industry median ratio of enterprise value to EBITDA is 7.5.
What is the (a) market-implied enterprise value of your firm and (b) market-implied price per share?
