Estimate the ipo price for detox company

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Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $367M and earnings of $27M. Detox company has filed a registration statement with the SEC for its IPO. If the industry average MV/Earnings ratio and MV/Revenues ratio for the recent fiscal year were 27.08 and 0.64 respectively. Estimate the IPO price for Detox Company using the MV/Revenues ratio and assuming that they will issue 21M shares.

Reference no: EM132643702

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