3. TBSI operates in the electronics industry. In the most recent year, the firm had revenue of $8,700,000, EBITDA of $2,100,000, and net income of $1,300,000. At the end of the most recent year, the firm had debt of $5,600,000, cash of $1,000,000, and 700,000 shares outstanding.
a. If the average ratio of enterprise value to revenue in the electronics industry is 1.72, then estimate the value of a share of TBSI stock using market multiples?
b. If the average price-to-earning (PE) ratio in the electronics industry is 9.95, then estimate the enterprise value of TBSI using market multiples?