Chapter_8收购、兼并和重组课后题目.ppt

Applying Relative, Asset Oriented, and Real Option Valuation Methods to Mergers and Acquisitions;You earn a living by what you get, but you build a life by what you give. —Winston Churchill;;Learning Objectives;Applying Market-Based (Relative Valuation) Methods1;Relationship Between DCF and Market Multiples;Market-Based Methods: Comparable Company Example;Market-Based Methods:Recent Transactions’ Method1;Market-Based Methods:Same or Comparable Industry Method;PEG Ratio; An analyst is asked to determine whether Basic Energy Service (BES) or Composite Production Services (CPS) is more attractive as an acquisition target. Both firms provide engineering, construction, and specialty services to the oil, gas, refinery, and petrochemical industries. BES and CPS have projected annual earnings per share growth rates of 15 percent and 9 percent, respectively. BES’ and CPS’ current earnings per share are $2.05 and $3.15, respectively. The current share prices as of June 25, 2008 for BES is $31.48 and for CPX is $26. The industry average price-to-earnings ratio and growth rate are 12.4 and 11 percent, respectively. Based on this information, which firm is a more attractive takeover target (i.e., more undervalued) as of the point in time the firms are being compared? Industry average PEG ratio:1 (MVT/VIT) / VITGR = A = 12.4/11 = 1.1273 BES: Implied share price = A x VITGR x VIT = 1.1273 x 15 x $2.05 = $34.66 CPX: Implied share price = A x VITGR x VIT = 1.1273 x 9 x $3.15 = $31.96 Answer: The difference between the implied and actual share prices for BES and CPX is $3.18 (i.e., $34.66 - $31.48) and $5.96 ($31.96 - $26.00), respectively. CPX is more undervalued than BES at that moment in time and therefore is the more attractive takeover target. 1Solving MVT = A x VITGR x VIT using an individual firm’s PEG ratio provides the firm’s current share price in period T, since this formula is an identity. An industry average PEG ratio may be used to provide an estimate of the fi