Reference no: EM132781099
XYZ ltd had opening net book value of $1,265,487 and number of shares of 550,678 (both values in thousand), respectively. Also, XYZ reported $2,300,600 sales and $175,000 net earnings.
Using the above information, you are required to:
problem a) Calculate multiples as above
problem b) Calculate enterprise value of XYZ based on each multiple
problem c) Calculate overall enterprise value of XYZ-average value
problem d) Assume XYZ's shares being traded at $9.30 per share currently, would you recommend to buy this share, justify your choice?
problem e) Discuss the limitations of the analysis