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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