In this workout, we're asked to calculate three things: the EBIT multiple, EBITDA multiple and the control premium All information is given at the deal announcement or the most recent filing. So we know all the information is correct Great! So let's start by going down And starting with our valuation, we start with the basic shares outstanding That's given to us as 274.7 Next we need to calculate the net new shares from options, so we will have to use the treasury stock method for that So I need to take my offer price, subtract off the offer strike price and divide that again by the offer price I then multiply that by the number of employee stock options outstanding. Which get's us an extra 4.3 If we add that onto the basic shares, we are diluted shares of 297 Now let's fill in the offer price That's the 73 again And by multiplying the offer price by the number of diluted shares, we get to our equity value 20,366.6 I now want to go from equity value to enterprise value So I need to fill in the remaining items in that adjustment. So we start with debt I then put in cash And I can find my net debt by taking debt minus cash We then fill in NCI of 156 and equity affiliates Now let's go over the bridge. So we start with equity value and I want to add on any other sources of financing So I add on my net debt, I add on my non-controlling interests I then subtract any non-core assets such as equity affiliates and that gets me my enterprise value of 21,355.6 Great! That's got me almost all the information I need to calculate my multiples The last one to fill in are EBIT and EBITDA. So EBIT, 1,330, I take that and add on depreciation and amortization to get 1,590 I can now calculate my multiples, so EV divided by EBIT 1,330 Gets me a multiple of 16.1 EV/EBITDA Gets me a multiple of 13.4 Lastly I need to calculate the offer premium For this, I take the offer price and divided it by the unaffected traded price Subtract one, then gets me an offer premium of 30.4% A couple of things to note just as we went there The offer price was the one that we use when calculating our new shares, we don't use the trade share price Remember, the offer price (the one that's been offered) and once the deal actually happens then all share options will be exercised based on that share price In addition, with the NCI and equity affiliates. You might notice that the figures we used here was NCI on the latest balance sheet and equity affiliates on the latest balance sheet Same for debt as well If we did have a market value that was different, we would of course us that But there was none given here, we have to assume that any difference was immaterial