University of Maryland Module 4 Multiples Based Enterprise Valuation HW This assignment is to be completed using CINTAS Corporation’s financials that can be retrieved on Yahoo finance and following the steps stated in the attached documents and using the templates attached to complete the work.Please cite references/ sources used and be mindful of Turnitin . This exam requires you, among other things, to estimate the stock price for Virgin America (Ticker: VA), and provide the
analysis as requested. You will need to use “Sources of Financial Data” listed in Course Content to obtain the necessary
financial info/statements for Virgin America Inc., to identify its peer companies and to obtain pricing and financial information
for them.
A.
Choose several peer companies for Virgin America Inc. and justify your choice. Choose several valuation multiples and
using comparable ratios of peer companies (as we did in Project 2 and discussed in Conferences) and Virgin America Inc.
financial information from prospectus, estimate the company’s equity value on April 3, 2016. It is required for this
(in millions) (in millions) (in millions) (in millions)
Using the same company as in Module 1 assignment and its peers, find multiple ratios of peer companies and then estimate your
company’s equity value and enterprise value.
Peer Companies:
Ticker
PERIOD ENDING
Peer 1
Peer 2
From Income Statement and Balance Sheet
Balance Sheet
Insert Relevant Items here
Peer 3
Your Company
Insert Relevant Items here
Income Statement
Insert Relevant Items here
Calculated Multiples
EV/EBITDA Multiple
P/E Multiple
Market to Book Multiple
Price/Revenue Multiple
Your Company Valuation
Enterprise Value based on EV/EBITDA multiple
Plus: Your Company Cash
Less: Your Company Interest-bearing debt
Total Equity value based on EBITDA
Shares Outstanding (millions)
Equity value per share
Equity value per share based on P/E multiple
Total Equity value based on P/E multiple
Plus: Your Company Interest-bearing debt
Less: Your Company Cash and equivalents
Enterprise value based on P/E multiple
Equity value per share based on MTB Ratio
Total Equity value based on MTB ratio
Plus: Your Company Interest-bearing debt
Less: Your Company Cash and equivalents
Enterprise value based on MTB ratio
Equity value per share based on P/Revenue ratio
Total Equity value based on P/Revenue ratio
Plus: Your Company Interest-bearing debt
Less: Your Company Cash and equivalents
Enterprise value based on P/Revenue ratio
information
ultiples and
America Inc.
hen estimate your
Solution Legend
Downloaded data
Formula/Calculation/Analysis required
Your Company
$0
$0
–
$0
$0
$0
$0
$0
$0
This Assignment uses the same company as in Modules 2 and 3
1. Choose peer companies for your company and download their relevant financial data.
You don’t have to download entire financial statements — only the items used in
multiples valuation
2. Using approach similar to the one described in this module’s Excel file, find valuation
multiples (ratios) of peer companies.
3. Estimate your company’s equity value and enterprise value
I suggest starting from the “Multiples Valuation Template” in Module 4 Excel file and adjust it
accordingly
Purchase answer to see full
attachment
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…