- 53 - Indicated Appraisal Ratios Value Per Share Price-to-earnings $19,200 Price-to-cash flow (net income plus depreciation and amortization) 22,200 Price-to-cash flow (EBITDA) 22,000 Price-to-tangible book value 25,900 In reconciling the foregoing indicated values, Mr. Stryker gave the greatest weight to the indicated value based on price-to- earnings ratios and the least weight to the respective indicated values based on price-to-cash flow ratios (EBITDA) and price-to- tangible book value ratios. Mr. Stryker concluded under the market approach that the freely traded value of the common stock of Marrero Land as of the valuation date was $21,200 (rounded) per share. Mr. Stryker then applied a discount of 35 percent because "the holder of a mi- nority and noncontrolling interest in the common stock of Marrero, unlike the holders of common stock in the selected public companies, had no market for his or her shares other than by a private sale, and could not compel registration".16 After applying that discount, Mr. Stryker determined under the market approach that the fair market value on the valuation date of the common stock of Marrero Land on a minority, noncontrolling basis was $13,800 per share. 16In determining that discount, Mr. Stryker did not consider amended article VI, but he did give consideration to the voting trust.Page: Previous 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Next
Last modified: May 25, 2011