What would be an indicated value of a company W based on the following information of comparable companies, A, B, and C.
Company A Company B Company C
Market / sales 1.6 1.4 1.1
Market / book 1.7 1.9 2.0
Market / Net income 23 18 20
Market = market value of equity, Book = book value of equity
Data for Company W:
Sales = $200 million, Book value of equity = 70 million, Net income = $ 8 million
Company A Company B Company C Industry Average
Market / sales 1.6 1.4 1.1 ...
Shows how to calculate the value of equity of a company using comparable companies - multiples