Question: What would be an indicated value of a company W based on the following information of comparable companies, A, B, and C).
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Company A
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Company B
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Company C
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Market / sales
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1.6
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1.4
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1.1
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Market / book
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1.7
|
1.9
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2.0
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Market / Net income
|
23
|
18
|
20
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Market = market value of equity, Book = book value of equity
Data for Company W:
Sales = $200 million, Book value of equity = 70 million, Net income = $ 8 million