Practice

An acquirer buys 85% of a company for $680M. The seller's most recent Balance Sheet shows $120M of Debt and $40M of Cash, and its LTM EBITDA is $95M. Calculate the implied TEV/EBITDA multiple.

Four comparable companies have the following Enterprise Values and EBITDA: Comp A ($800M EV, $100M EBITDA), Comp B ($650M EV, $95M EBITDA), Comp C ($1,100M EV, $130M EBITDA), Comp D ($500M EV, $70M EBITDA). Your target has $110M of EBITDA. Calculate the median multiple and the target's implied Enterprise Value.

Your target's EBITDA is $140M, and the median Comps multiple is 7.5x. It has $200M of Debt, $60M of Cash, and 50M diluted shares. Walk from the multiple to an implied share price.

A company records a $150M Goodwill Impairment and simultaneously issues $60M of Debt to help fund future growth, at a 25% tax rate. Calculate the net change in Equity Value and Enterprise Value.

A Parent Company has an Equity Value of $420M, Cash of $30M, Debt of $90M, and a Noncontrolling Interest of $45M on its Balance Sheet (representing the portion of a majority-owned Subsidiary it doesn't own). It also holds a 20% Equity Investment in a separate Associate Company, carried at $25M on its Balance Sheet. Calculate the Parent's Enterprise Value, and explain why the NCI and Equity Investment adjustments point in opposite directions.

A company collects $300M upfront from a customer for a service not yet delivered (recorded as Deferred Revenue). One year later, it delivers the service, recognizing the full $300M as Revenue along with $180M of Operating Expenses, at a 25% tax rate. Walk through the entire process and calculate the net change in Equity Value and Enterprise Value from start to finish.

A company has an Enterprise Value of $1,200M, Revenue of $600M, EBITDA of $200M, EBIT of $150M, and Net Income to Common of $80M. Its Equity Value is $900M. Calculate TEV/Revenue, TEV/EBITDA, TEV/EBIT, and P/E.

It's currently November 2026. A company's full-year 2025 Revenue was $800M. Its Q1-Q3 2026 Revenue was $650M, and its Q1-Q3 2025 Revenue was $580M. Its Current Enterprise Value is $3,000M, and consensus estimates project full-year 2026 Revenue of $900M and full-year 2027 Revenue of $990M. Calculate the company's LTM Revenue, LTM TEV/Revenue multiple, and both forward TEV/Revenue multiples.

A company's fiscal year ends March 31st, with full fiscal-year EBITDA of $108M. Its March-December results this year were $91M of EBITDA, and the same March-December period last year was $73M. Calendarize its EBITDA to a December 31st basis, then apply a 7.0x multiple to estimate Enterprise Value.

An acquirer buys 90% of a company for $810M (paid in a mix of cash and stock). The seller's LTM Revenue is $260M and LTM EBITDA is $78M. Its most recent Balance Sheet shows $95M of Debt and $30M of Cash. Calculate the implied TEV/Revenue and TEV/EBITDA multiples.

An airline has Enterprise Value (excluding Operating Leases) of $2,000M, on-Balance Sheet Operating Leases of $500M, EBITDA (under U.S. GAAP, deducting the full Lease Expense) of $300M, and Rent Expense of $80M. Calculate EBITDAR and both the TEV/EBITDA and (TEV Including Operating Leases)/EBITDAR multiples.

Five comparable companies: A ($900M EV, $120M EBITDA), B ($750M EV, $100M EBITDA), C ($1,200M EV, $140M EBITDA), D ($600M EV, $90M EBITDA), E ($1,050M EV, $115M EBITDA). Your target has $105M of EBITDA, $150M of Debt, $45M of Cash, and 40M diluted shares. Calculate the median multiple and walk to an implied share price.

A company has 20,000 shares outstanding at a $25.00 share price. It has 200 options outstanding at a $15.00 exercise price, 150 RSUs outstanding, and 300 convertible bonds outstanding, each with a $150 par value and a $20.00 conversion price. It also has Cash of $50,000, Debt of $180,000, and Noncontrolling Interests of $60,000. Calculate its Diluted Equity Value and its Enterprise Value.