HiCoVeeland, Inc. published its financial results for the past year, showing that it had $10mm...
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HiCoVeeland, Inc. published its financial results for the past year, showing that it had $10mm in sales, $2mm in gross profit, $5mm in operating expenses/SG&A (including $250k in depreciation and amortization), and net income of $300,000. Appropriate valuation multiples for HCV would be 15x earnings, 1x sales, and 4x EBITDA. What valuation would each of these multiples result in for HCV? Note: they will each result in different numbers.
Value as a multiple of earnings:
Value as a multiple of sales:
Value as a multiple of EBITDA:
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