Mini case-Valuation

The 50-year –old chairman and major shareholder of private health, a private regional health
maintains organization is considering to sell the stake of the company and retiring from
business. However old chairman thought upon two main options that he is willing the sale of
his interest to an employee share ownership plan or to one of the firm’s publicly traded
competitors. The CFO of the company regularly receives research reports from the
investment banker to take the company public. From the reports he is able to compare the
following information for private health and two other public health maintains organization
operating in the same region. Old chairman has asked private health’s chief financial officer
to calculate the value of the firm. Data of all the organization is as follows----

Private Health Happy Health care Community health

Balance sheet
Assets 160 300 380
Long term Debt 5 100 0
Net worth 80 120 175

Income statement
Revenues 350 420 850
EBITDA 45 55 130
Net Income 30 20 75
Market Data
EPS 3 .67 2.14
Price-Earnings Ratio n/a 21 14.5
Share Outstanding 10 30 35
Number of members 500000 600000 1100000

How would the CFO of the company from the above information calculate the appropriate
value for private health?