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For the year ending Dec. 31, 2018, MLH Corp. had EBITDA = $8 million, and Net...

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Finance

For the year ending Dec. 31, 2018, MLH Corp. had EBITDA = $8million, and Net Income = $4 million. At the time, MLH had debt of$4 million, excess cash of $10 million, and 2 million sharesoutstanding.

A. Suppose that Montastic Inc. (a comparable firm that ispublicly traded) has a P/E ratio of 18. What total equity value andshare price would you then estimate for MLH.

B. Suppose that Montastic Inc. (the comparable firm) has anEnterprise Value/EBITDA multiple of 9.25. What enterprise value andshare price would you then estimate for MLH?

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For the year ending Dec. 31, 2018, MLH Corp. had EBITDA = $8million, and Net Income = $4 million. At the time, MLH had debt of$4 million, excess cash of $10 million, and 2 million sharesoutstanding.A. Suppose that Montastic Inc. (a comparable firm that ispublicly traded) has a P/E ratio of 18. What total equity value andshare price would you then estimate for MLH.B. Suppose that Montastic Inc. (the comparable firm) has anEnterprise Value/EBITDA multiple of 9.25. What enterprise value andshare price would you then estimate for MLH?

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