Use the table for the question(s) below.
Name | Market | Enterprise | Enterprise | Enterprise |
Capitalization | Value | Price/ | Value/ | Value/ |
($ million) | ($ million) | P/E | Book | Sales | EBITDA |
Gannet | 6350 | 10,163 | 7.36 | 0.73 | 1.4 | 5.04 |
New York Times | 2423 | 3472 | 18.09 | 2.64 | 1.10 | 7.21 |
McClatchy | 675 | 3061 | 9.76 | 1.68 | 1.40 | 5.64 |
Media General | 326 | 1192 | 14.89 | 0.39 | 1.31 | 7.65 |
Lee Enterprises | 267 | 1724 | 6.55 | 0.82 | 1.57 | 6.65 |
The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Which of the following ratios would most likely be the most reliable in determining the stock price of a comparable firm?
◦ Enterprise Value/Sales
◦ Enterprise Value/EBITDA
◦ P/E
◦ Price/Book