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Through a comparable company analysis for Alibaba, you determined a P/E ratio of 6.0x is appropriate to value the company. Based on this metric, what is the implied Enterprise Value of Alibaba?

Sagot :

batolisis

Answer:

hello your question is incomplete attached below is the complete question

answer : $ 1,391.692 ( first option )

Explanation:

Given P/E ratio = 6.0

Determine Implied Enterprise value

Implied Enterprise value =  (EBITDA * P/E ratio ) + Net debt (cash )

where EBITDA = $205.663

P/E ratio = 6

Net debt = $157.714

hence Implied Enterprise value = (205.663 * 6)+ 157.714 ≈ $ 1,391.692

NOTE : all $ values are in millions

View image batolisis

The implied Enterprise Value of Alibaba is $740,366‎

  • The calculation is as follows:

Implied equity value = NTM earnings × P/E ratio

= $149,680 × 6.0

= $898,080‎

Now Implied enterprise value

= Implied equity value + Net debt

= $898,080 - $157,714

= $740,366‎

Therefore we can conclude that The implied Enterprise Value of Alibaba is $740,366‎

Learn more: brainly.com/question/16911495

View image andromache
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