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Hands-On Financial Modeling with Microsoft Excel 2019 by Shmuel Oluwa

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Precedent transaction comparative

The precedent transaction comparative method looks at similar companies that have recently undertaken similar transactions and assumes the price at which the securities changed hands.

The following screenshot shows a table of similar transactions with their multiples:

The share price computations are shown in the following screenshot:

Using EV/Sales, the share price is N75.2.

Using EV/EBITDA, the share price is N46.2.

Using P/E ratio, the share price is N35.4.

A summary of the results is shown in the following ...

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