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  • Pink Fragrances, Inc.: Balance Sheet, 2002

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    Vaibhav Srivastava
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    This document contains financial information for PINK Fragrances Inc, including their balance sheet from 2002 showing assets of $3200 including net fixed assets of $2000 and working capital of $1200. It also includes their profit and loss account from 2002-2003 showing sales, costs, earnings before taxes. The capital is divided into 1.5 million shares worth $1 each. The document asks to value the company using PER, EV/EBITDA, EV/Sales ratios compared to competitors, and determine the value per share and whether to buy or sell shares if the stock price was $1.2 per share.

    Original Description:

    Multiple Valuation Case

    Original Title

    Pink Valuation

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    This document contains financial information for PINK Fragrances Inc, including their balance sheet from 2002 showing assets of $3200 including net fixed assets of $2000 and working capital of $1200. It also includes their profit and loss account from 2002-2003 showing sales, costs, earnings before taxes. The capital is divided into 1.5 million shares worth $1 each. The document asks to value the company using PER, EV/EBITDA, EV/Sales ratios compared to competitors, and determine the value per share and whether to buy or sell shares if the stock price was $1.2 per share.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    27 views1 page

    Pink Fragrances, Inc.: Balance Sheet, 2002

    Uploaded by

    Vaibhav Srivastava
    This document contains financial information for PINK Fragrances Inc, including their balance sheet from 2002 showing assets of $3200 including net fixed assets of $2000 and working capital of $1200. It also includes their profit and loss account from 2002-2003 showing sales, costs, earnings before taxes. The capital is divided into 1.5 million shares worth $1 each. The document asks to value the company using PER, EV/EBITDA, EV/Sales ratios compared to competitors, and determine the value per share and whether to buy or sell shares if the stock price was $1.2 per share.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    We have the following financial information for a company called PINK Frangrances Inc:

    PINK FRAGRANCES, Inc.


    BALANCE SHEET, 2002 ASSETS Net Fixed Assets Working Capital Cash LIABILITIES Shareholders equity Financial Debt

    2000 1200 0 3200

    1500 1700 3200

    PROFIT AND LOSS ACCOUNT Sales COGS Gross Margin Other costs D&A Interest Earnings before taxes 2002 1800 -1170 630 -310 -170 -65 85 2003E 2000 -1260 740 -350 -185 -80 125

    - The capital is divided into 1,500,000 shares (book value of 1/share) - PINK pays 30% of corporate taxes. You are asked to calculate: a) THE VALUE OF THE COMPANY USING: PER, EV/EBITDA y EV/Sales (For this multiple consider than the average value of comparable companies is 2.0 and 1.9) b) Value of one share according to the different valuations obtained c) If PINK would be a public company and the stock price would be 1.2 euros / share, what would you recomend to do? Buy? Sell? Justify your answer.

    L. Alemany

    Pgina 1

    27/12/2011

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