Question

Jonah’s Fishery has EBITDA of $86 million. Jonah’s has market value of equity and debt of $555 million and $60 million, respectively. Jonah’s has cash on the balance sheet of $33 million. What is Jonah’s EV ratio? (Round your answer to 2 decimal places.)

Answer 1

6.77

Step-by-step explanation:

The Jonah’s Fishery EV ratio shall be determined through the following mentioned formula:

Jonah’s Fishery EV ratio= EV/ EBITDA

EV= Market value of equity+ Market value of debt- Cash

EV =$555 million+$60 million-$33 million=$582 million

EBITDA=$86 million

So applying the above data to the EV ratio formula:

Jonah’s Fishery EV ratio= $582 million/$86 million=6.77