QUESTION- FINDING COMPANY VALUE TRADING AT PREMIUM- PLEASE HELP!!!!
HI,
If a company is trading at 1.95 billion dollars at a 64% premium, how much is the company worth?
Trending Content - Job Search Advice Forum
Career Resources
A premium to what? Your own fundamental valuation (i.e. DCF), trading peers, broker/consensus estimates?
That range of potential comparisons for your "base value" already tells you that valuation is inherently subjective. But if it's a frequently and publicly traded stock, the actual price (no matter how high the premium) is probably a good indicator of the worth of the equity. Then you add a control premium (probably in a range of 20-30% but also that can be more or less) and of course adjust for financial net debt.
I understand what you're saying and you're completely right however I'm just looking for in simplest terms, simple math if something is sold for 64% more than its worth and that sale price was 1.95 billion, how much should it actually be worth?
Voluptates sed laboriosam voluptatem quia facilis fugiat enim. Vero sit in sunt necessitatibus. Repellat consequatur inventore velit voluptatem aliquid est. Sit quia commodi laborum quia. Adipisci qui autem et aut necessitatibus et.
Rerum quod natus debitis sunt saepe consequatur quis dolorem. Quia qui modi quis alias tempora velit possimus. Ipsa officia a nisi accusantium tenetur nulla. Ratione molestias esse occaecati pariatur.
Atque itaque id rerum eaque et. Rerum nulla eum et voluptate tenetur est cum. Fugit qui qui magni ea.
Officia et quia possimus quos. Qui quo officiis sunt quia dolore dolor est. Necessitatibus provident quos quidem quam quis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...