Comments (12)

Jun 21, 2011

Problem is that I only have P/B and P/E ratios on this excel sheet. Am I supposed to look at other ratios?

Jun 21, 2011

Problem is that I only have P/B and P/E ratios on this excel sheet. Am I supposed to look at other ratios?

Jun 21, 2011
Jun 21, 2011

is it possible to valuate using P/B and P/E?

Jun 21, 2011

P/E is one metric you can use but P/B is going to be worthless in this case. get some forward EBIT and EBITDA multiples as well as premiums paid

Jun 21, 2011

DISCLAIMER: Not in finance yet

If you have their next year dividend (current div x 1+g), growth (ROE x b) and the investors required return (WACC//CAPM) ::: D1/(r-g) = Price

Compare that to the price being asked to see if under/overvalued. Would be my best guess I'm interested to see other approach.

Jun 21, 2011

outside of intro to corporate finance the above idea isn't going to hold much weight. Ideally you have the time and resources to do a full DCF, trading and transaction comps and possible an LBO if this is a take-private transaction.

What type of transaction is this?

Jun 21, 2011

it's an acquisition. I don't know why the sponsor just sent us a model with that little information.

Jun 21, 2011

For an adequate multiple analysis you'd better check the comparable companies ROIC/expected growth.

Jun 21, 2011

what industry is the company in?

Jun 21, 2011

market cap X share price duh!

Jun 21, 2011
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