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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.
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