A firms ev ebitda ratio has historically been 74with


Question: 1. Company X is in the household goods industry. The stocks of companies in that industry have consistently had P/E ratios that have averaged 8.4. Company X most recently reported net income of $42,000 and there were 55,500 shares of common stock outstanding.What would the estimated value of Company X stock using this information?

2. A firm's EV / EBITDA ratio has historically been 7.4with little variation. It's current EBITDA is $680. If the firm currently has $1,900 in debt, $400 cash, and 135shares of stock outstanding, what would be the ‘intrinsic value' of a share of its stockusing this information?

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Finance Basics: A firms ev ebitda ratio has historically been 74with
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