What is the purchase equity value for a company with LTM EBITDA of $200 million purchased at an 8.5x multiple?

The purchase equity value can be calculated by multiplying the Last Twelve Months (LTM) EBITDA by the chosen valuation multiple. In this case, the LTM EBITDA is $200 million, and the multiple is 8.5x.

To find the equity value, the calculation is as follows:

Purchase Equity Value = LTM EBITDA × Valuation Multiple

Purchase Equity Value = $200 million × 8.5 = $1.7 billion.

This calculation shows that a company with an LTM EBITDA of $200 million and valued at an 8.5x multiple would be considered worth $1.7 billion in terms of purchase equity value. The correct answer reflects the accurate computation of the given figures, which is essential for assessing a company's market valuation.