Dual Share Class Companies
Hi all, been thinking a bit about companies with two classes of shares (Class A / Class B) and implications for modelling and am a little confused. Would much appreciate any insights on the below points:
1) For a company like Berkshire Hathaway where there's a huge difference in price / rights between classes, would you look at market cap as (Class A share price * Class A shares) + (Class B share price * Class B shares)? Would your P/E ratio be the same for each share class (market cap / net income) or is it different for each share class?
2) From a LBO perspective, your offer price would be different for each class, right?
Thank you!
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