PE Technical Question
You are looking at a business with the following financials: Revenues of $150 Enterprise value of $300 Shares outstanding of 25 SG&A of 10% of Sales Depreciation expense of $15 Tax rate of 33% $100 of debt Gross margin of 20% $50 of cash Calculate the share price. Calculate the EV/EBITDA ratio. Calculate the P/E ratio.
Relatively forward:
1) For share price, EV-> Market cap. 300-100+50 = 250, divided by 25# = share price of $10.
2) For EBITDA / NI. Start with revenues down to EBITDA which gives ~$15m, subtract the D&A (are you sure about D&A amount?), EBIT is 0. No interest, assuming no tax credit, NI = 0?
3) EV/EBITDA = 300/15. For P/E -> well NI is 0 which seems odd in this example.
Voluptatibus occaecati earum ut aut cum odit placeat. Et iusto enim commodi laborum ipsa. Hic nihil vel pariatur mollitia earum qui iste.
Est omnis iure sint est. Et dolores est ea enim. Corporis eaque ut distinctio. Est magnam minus facilis ad. Voluptatibus tempora aut maxime occaecati commodi. Velit quod a minima.
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...