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What are the comparative advantages of valuing diamond

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Problem 1: What are the comparative advantages and limitations of valuing Diamond's common stock using the market-based (also known as multiples-based) method? Please estimate market multiples. Using Diamond's forecast of EPS (earnings per share), and EBITDA (earnings before interest, taxes, depreciation and amortization), what share values would you expect for its common stock using the multiples-based method (P/E and Enterprise Value (EV)/EBITDA)?

Reference no: EM132953486

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