discussion board

Calculate the implied enterprise value of Rosetta Stone using the average EV/EBITDA multiple for all three categories of comparable firms provided in Exhibit 9 and Rosetta Stone EBITDA provided in Exhibit 6, a total of three multiples. Interpret what these numbers suggest regarding the value of Rosetta Stone. The market-multiples approach seems easy. What are the some pros and cons of using a market-multiples approach in valuation?

Exhibit 9

EXHIBIT 6

Calculation PART