ABC group is privately held and considering the sale of the company to an outside buyer. net sales of $2.12 million, EBITDA of $11.1 million and net income of $2.9 million. $12 MILLION in debt. Compared to 3 companies in the industry and will bench mark its value off the AVERAGE of these companies. no surplus cash is being held by any.
Group X Group Y Group Z
net sales 25,000,000 37,500,000 80,000,000
ebitda 12,500,000 20,000,000 37,500,000
net income 2,500,000 3,000,000 10,000,000
equity value 45,000,000 60,000,000 160,000,000
interest baring debt 15,000,000 20,000,000 40,000,000
Assume you must use the average of the 3 companies which benchmark P&L line item will provide the highest equity value of ABC group.