Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko,2010-2015
Pro Forma Balance Sheet for Ideko,2010-2015

-Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2015 is closest to:

Question

Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko,2010-2015
  Pro Forma Balance Sheet for Ideko,2010-2015
 
-Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2015 is closest to:

Quizplus · Accepted Answer

To calculate the EV/Sales ratio, we first need to find the EV (Enterprise Value) of Ideko in 2015. Using the EBITDA multiple of 9.4, we can find the enterprise value as:
EV = EBITDA multiple x EBITDA in 2015
EV = 9.4 x 2,130 = 20,022
Next, we need to find the sales figure in 2015 from the Pro Forma Income Statement:
Sales in 2015 = 4,200
With these figures, we can calculate the EV/Sales ratio as:
EV/Sales ratio = EV / Sales in 2015
EV/Sales ratio = 20,022 / 4,200 = 4.77
Therefore, the continuation EV/Sales ratio of Ideko in 2015 is closest to option A) 1.9.

Use the Tables for the Question(s)below