Question

The estimated EBITDA for the fiscal year 2020 is A$51.5 million. The closest range of EV/EBITDA multiples estimated from peer firms varies between 14.8 and 31.2. BAL currently has minus A$35 million net debt and 113 million shares outstanding, which is assumed to be maintained stable. Estimate the share price range for BAL

Answer 1

Based on the given data, pls find below:

Enterprise Value (EV) = EBITDA * Multiple

Equity Value = Enterprise Value - Net Debt (In this case, since the Net Debt is negative, the equity value increased)

Price Range is : between $ 7.05 to $ 14.53

EBITDA	51.5
EV/EBITDA Multiple		14.8	31.2
Enterprise Value		762.2	1606.8
Less: Net Debt		-35.0	-35.0
Equity Value		797.2	1641.8
Shares Outstanding		113	113
Value Per Share ($)		7.05	14.53