Question

A. For Company I, list ten firms which you consider "comparable" to Company I. Create a single table of these ten firms showing the Trailing P/E, Price/Sales, Price/Book and Enterprise Value/EBITDA

ratio for each (You can find ratios like these easily using public information sources like Yahoo Finance. For an illustrated example, click on this link: Yahoo finance has useful ratios). B. Assess the value of Company I using these criteria: • What is the average and median Trailing P/E for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? • What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? • What is the average and median Price/Book for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? • What is the average and median Enterprise Value/EBITDA for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I?

Fig: 1