Value to shares (stock price) of Campbell Soup using the MVIC/EBITDA multiples f

Question

Value to shares (stock price) of Campbell Soup using the MVIC/EBITDA multiples for the guideline public companies. Round to the nearest cent.

Ticker Company Industry Market Cap Trailing P/E P/B Dividend yield Debt/Eq Price MVIC / EBITDA CPB Campbell Soup Company Processed & Packaged Goods 12.73B 35.06 9.02 3.33% 7.01 42.2 GIS General Mills, Inc. Processed & Packaged Goods 27.43B 17.19 4.51 4.15% 2.58 47.2          16.68 K Kellogg Company Processed & Packaged Goods 25.55B 14.49 9.00 3.04% 3.2 73.9          14.40 MKC McCormick & Company, Inc. Processed & Packaged Goods 16.29B 31.26 5.48 1.65% 1.7 127          24.91 SJM The J. M. Smucker Company Processed & Packaged Goods 12.78B 22.88 1.64 2.97% 0.61 115          15.47 Book Value Equity (Millions) Campbell Soup Company     1,373.00 EPS Campbell Soup Company             0.86 DPS Campbell Soup Company             1.40 EBITDA (Millions) Campbell Soup Company        925.00 Market Value Liabilities (Millions) Campbell Soup Company 14,892.00 Shares Outstanding (Millions) Campbell Soup Company        300.65

Explanation / Answer

EBITDA of Campbell=925

Average MVIC/EBITDA of idnustry=(16.68+14.40+24.91+15.47)/4=17.865

MVIC of Campbell=17.865*925=16525.125

Share price=(16525.125-14892)/300.65=5.431980708

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