Enterprise value to share price
7x EV/EBITDA, $100M EBITDA, $100M cash, $300M debt and 100M shares outstanding. What is the share price?
Interview check: move from EV to equity value by subtracting debt and adding cash.
Home › Interview prep › Evercore Superday Technical Drill: 30 Minutes
Practice three certified Evercore valuation answers, then use the 30-minute spoken drill for first-round and Superday preparation.
Commit to each bridge before checking the math. Round and topic labels come from the certified workbook.
7x EV/EBITDA, $100M EBITDA, $100M cash, $300M debt and 100M shares outstanding. What is the share price?
Interview check: move from EV to equity value by subtracting debt and adding cash.
EPS is $2, there are 100 shares, P/E is 4x, debt is $200, NCI is $75, cash is $50 and inventory is $100. What is EV?
Share price = 4x × $2 = $8. Equity value = $8 × 100 = $800.
$800 + $200 debt + $75 NCI - $50 cash = $1,025.
Inventory is an operating working-capital asset, so it is not adjusted in the EV bridge.
Answer: enterprise value is $1,025.
Coffee Co has $100M EBITDA. Donut Co has $200M EBITDA and trades at 5x. Parent equity value is $1,000M, debt plus NCI is $500M, and cash is $200M. What is Coffee Co's implied multiple?
$1,000M + $500M - $200M = $1,300M.
5.0x × $200M EBITDA = $1,000M.
$1,300M - $1,000M = $300M EV. $300M / $100M EBITDA = 3.0x.
Why 3x versus 5x? Lower growth or margins, more capital intensity or risk, less liquidity and transparency, or a holding-company discount.
Practice in an editable Excel workbook organized for repeated out-loud drills.
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