Solution-What is the new company valuation

What is the new company valuation

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Reference no: EM133119548

The financial information for Newco is the VC's expectation at the time of exit.

	Company 1	Company 2	Company 3	New Company
EV	200	320	110
Revenue	64	70	50	50
EBITDA	50	-10	45	10
EBIT	10	40	22	4
Net income	18	-34	8	5
Number of employees	110	350	100	220
Book value of equity	110	40	50	55
Market value of equity	200	50	400

a. What is the new company's valuation based on average comparable EV/Revenue, EV/EBITDA, EV/EBIT, EV/Employees, P/E, and P/BV, respectively? Ignore negative ratios. (Do not round your intermediate calculations. Enter your final answer rounded, if necessary, to 2 decimal places without the $ symbol).

b. Which ratio-based valuation gives the highest valuation?

c. Which ratio-based valuation gives the lowest valuation?

Reference no: EM133119548

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What is the new company valuation

Reference no: EM133119548

Reference no: EM133119548

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