Rojers Communications Inc. sells for $34.50 and there are 605 million shares outstanding at the end of 2018. Based on the 2018 annual report, EBIT is $2,024 million, net income is $1,002 million, and depreciation is $1,760 million. What is the Enterprise Multiple?
A) 5.52
B) 10.31
C) 20.83
D) 4.52
E) 5.00

Question

Quizplus · Accepted Answer

The Enterprise Multiple is calculated as (Market Capitalization + Debt - Cash) / EBITDA. Market Capitalization is $34.50 * 605 million shares. EBITDA is EBIT + Depreciation. The correct calculation results in an Enterprise Multiple of approximately 5.52.