A company has 20 million of CAPEX in perpetuity, what is it's depreciation in year 250?
A company trading at $13/share has 17mm shares, $79mm in debt, $50mm in cash, and $25 of EBITDA; the companys peer set trades at 15x EBITDA, is the company trading at a premium or discount?
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equity value = 13 x 17 = 221 EV = 221 +79 - 50 = 250 EV/EBITDA = 250/25 = 10
Since 10 15, it's trading at a discount.
First question seems like it's asking whether you know that capex and depreciation should eventually converge. So I'd answer $20m.
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