Enterprise value & equity value / ORIGINAL SCENARIO

From operations to shareholders

A logistics company has EBITDA 84, a 7.5x EV/EBITDA multiple, debt 210, excess cash 54 and 30 million diluted shares. Find EV, equity value and per-share value.

Amounts $m except share price; no preferred, NCI or other claims. Debt at stated value.

Try it before the answer →

Worked answer

ev: 84 × 7.5 = 630
equity: 84 × 7.5 − 210 + 54 = 474
price: (84 × 7.5 − 210 + 54) ÷ 30 = 15.8

Apply an enterprise multiple to EBITDA.

Subtract debt and add excess cash, then divide by diluted shares.

Technical follow-ups

If 40 of new debt is retained as cash with no other changes, what happens to equity and EV?

If the quoted multiple rises by one turn with EBITDA and net debt fixed, quantify the equity-value effect per share.

Follow-up answer guide

Equal debt and excess cash issuance leaves net debt, operating EV and equity value unchanged under the stated no-fee/no-repricing assumptions.

A fresh retry

A logistics company has EBITDA of 96, an EV/EBITDA multiple of 8×, debt of 250, excess cash of 58, and 32 million diluted shares. Calculate EV, equity value and value per share.

Amounts $m except share price; no preferred, NCI or other claims. Debt at stated value.

Inspect replacement inputs

ebitda: 96
multiple: 8
debt: 250
cash: 58
shares: 32

Check the retry bridge

ev: 96 × 8 = 768
equity: 96 × 8 − 250 + 58 = 576
price: (96 × 8 − 250 + 58) ÷ 32 = 18

Original fictional example. Not a report of a specific firm’s interview. Explanations need qualified human review.