Jonah’s Fishery has EBITDA of $67 million. Jonah’s market value of equity and de

Question

Jonah’s Fishery has EBITDA of $67 million. Jonah’s market value of equity and debt is $433 million and $40 million, respectively. Jonah has cash on the balance sheet of $16 million. What is Jonah’s EV ratio?(Round your answer to 2 decimal places.)

Jonah’s Fishery has EBITDA of $67 million. Jonah’s market value of equity and debt is $433 million and $40 million, respectively. Jonah has cash on the balance sheet of $16 million. What is Jonah’s EV ratio?(Round your answer to 2 decimal places.)

Explanation / Answer

EBITDA = $67 million

Market value of equity = $433 million

Market value of debt = $40 million

Cash on the balance sheet = $16 million

Enterprise Value = Market Value of Equity + Market value of Debt – Cash Holdings

Enterprise Value = $433 +$40 -$16

Enterprise Value = $457 million

So,

Enterprise Value Ratio = Enterprise Value / EBITDA

Enterprise Value Ratio = $457 / $67

Enterprise Value Ratio = 6.82 times

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