Problem
You are supposed to calculate the equity value of a private firm. Here is the financial statements of the private firm ( in thousands) :
|
2016
|
|
Current Assets
|
|
|
Cash and equivalents
|
$20,000
|
|
Receivables
|
40,000
|
|
Inventories
|
29,000
|
|
Other current assets
|
23,000
|
|
Total current assets
|
$112,000
|
|
|
|
Noncurrent Assets
|
|
|
Property, plant, and equipment
|
$145,000
|
|
Less: Accumulated depreciation
|
43,000
|
|
Net property, plant, and equipment
|
102,000
|
|
Investments
|
70,000
|
|
Other noncurrent assets
|
36,000
|
|
Total noncurrent assets
|
208,000
|
|
Total assets
|
$320,000
|
|
|
|
Current Liabilities
|
|
|
Accounts payable
|
$41,000
|
|
Short-term debt
|
12,000
|
|
Other current liabilities
|
17,000
|
|
Total current liabilities
|
$70,000
|
|
Noncurrent Liabilities
|
|
|
Long-term debt
|
100,000
|
|
Total noncurrent liabilities
|
100,000
|
|
Total liabilities
|
170,000
|
|
|
|
Shoreholders' Equity
|
|
|
Common equity
|
40,000
|
|
Retained earnings
|
110,000
|
|
Total equity
|
150,000
|
|
Total iabilities and equity
|
$320,000
|
|
2016
|
|
Sales
|
$250,000
|
|
Cost of goods sold
|
125,000
|
|
Gross operating profit
|
125,000
|
|
Selling, general, and administrative expenses
|
50,000
|
|
EBITDA
|
75,000
|
|
Depreciation and amorization
|
10,500
|
|
EBIT
|
64,500
|
|
Interest expense
|
11,000
|
|
Pretax income
|
53,500
|
|
Income taxes
|
16,050
|
|
Net income
|
$37,450
|
|
Shares outstanding
|
13,000
|
|
EPS
|
2.88
|
You also find the following four competitors and their enterprise value and EBITD:
|
($ millions)
|
APU
|
PRAX
|
AIT
|
ARG
|
|
Enterprise Value
|
31,140
|
47,400
|
2,010
|
10,454
|
|
EBITDA
|
2,481
|
3,703
|
197
|
943
|
A) What is the enterprise value of the private firm based on the EBITDA multiple valuation?
B) What is the equity value? What is the equity value per share?