Let's say you have ParentCo, with 2 subs- CoffeeCo and DonutCo. You own 100% of CoffeeCo (EBITDA 100m, private). You own 80% of DonutCo (EBITDA 200m, trades at 5x). ParentCo has share price of $10, 100m shares, 500m debt, 200m cash. What multiple has the market implicitly assigned to CoffeeCo?
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