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trancy trancy
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5 years ago
Use the table for the question(s) below.

NameMarketEnterpriseEnterpriseEnterprise
CapitalizationValuePrice/Value/Value/
($ million)($ million)P/EBookSalesEBITDA
Gannet635010,1637.360.731.45.04
New York Times2423347218.092.641.107.21
McClatchy67530619.761.681.405.64
Media General326119214.890.391.317.65
Lee Enterprises26717246.550.821.576.65
Average11.331.251.356.44
Maximum+60%112%+16%+22%
Minimum-40%69%-18%-19%


The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry.  Which of the following ratios would most likely be the most reliable in determining the stock price of a comparable firm?

▸ Enterprise Value/Sales

▸ Enterprise Value/EBITDA

▸ P/E

▸ Price/Book
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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Mtoney9Mtoney9
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Posts: 384
5 years ago
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trancy Author
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5 years ago
Thanks for your help!!
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Yesterday
Helped a lot
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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