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An implied 40x EBITDA

A DCF for a mature cement company implies a terminal value of 40x final-year EBITDA, while listed peers trade at 10–14x. What should the analyst do?

A.Keep it, as DCF is better than multiplesB.Revisit growth, margins and WACC, as the terminal case looks too highC.Raise the WACC until the value matches the current share priceD.Report it with a note that peers are undervalued

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An implied 40x EBITDA

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