Chartered Financial Analyst Level 2
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An analyst is assessing the value of a private company from the perspective of a non-controlling, minority-interest shareholder. The analyst gathers the following information:
- The company's normalized EBITDA is
$35,000,000
- The comparable peer multiple for EV/EBITDA is 8.0
- The discount for lack of control is 12%
- The discount for lack of marketability is 15%
Based on the guideline public company method, the value of the company is:
An analyst is assessing the value of a private company from the perspective of a non-controlling, minority-interest shareholder. The analyst gathers the following information:
- The company's normalized EBITDA is
$35,000,000 - The comparable peer multiple for EV/EBITDA is 8.0
- The discount for lack of control is 12%
- The discount for lack of marketability is 15%
Based on the guideline public company method, the value of the company is:
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A
$209,440,000.
B
$246,400,000.
C
$280,000,000.
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