The case presents two scenarios with valuation results from using trading multiples and from using discounted cash flow. Take the analysis given to you as correct and use as little or as much of it as you like to estimate the value of Makes-You-Better. Please note that not all steps are shown in some of the analysis, so focus on using the analysis provided rather than trying to verify the calculations.
Write up your answer as a three page memo (typed, double-spaced 12-point font, one-inch margins). Use the questions below to guide your answer. Write clearly, using proper grammar and punctuation.
- Estimate the value of Makes-You-Better using trading multiples.
- Estimate the value of Makes-You-Better using discounted cash flow analysis.
- Estimate the value of Makes-You-Better.In other words, use any or all of the analysis to determine how much you would be willing to pay for Makes-You-Better.