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Calculate Hawaiian Airlines' share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EV/EBITDA Hawaiian Airlines Median Implied EV Implied market cap. $ Implied share price $ $ EV/Sales 0.60 S S S 3.4 $ S s EV/EBIT 4.8 s $ P/E 6.1 P/Book 1.4

Calculate Hawaiian Airlines' share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EV/EBITDA Hawaiian Airlines Median Implied EV Implied market cap. $ Implied share price $ $ EV/Sales 0.60 S S S 3.4 $ S s EV/EBIT 4.8 s $ P/E 6.1 P/Book 1.4

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Consider the following data,, for the airline industry for April 2019 (EV = enterprise value, Book = equity book value). Suppose Hawaiian Airlines (HA) has 50 million shares outstanding. Estimate Hawaiian Airlines' share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown (excluding Hawaiian Airlines). Calculate Hawaiian Airlines' share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) Hawaiian Airlines Median Implied EV Implied market cap. Implied share price Data table $ $ $ EV/Sales 0.60 Company Name Delta Air Lines (DAL) American Airlines (AAL) United Continental (UAL) Southwest Airlines (LUV) Alaska Air (ALK) JetBlue Airways (JBLU) SkyWest (SKYW) Hawaiian (HA) $ $ $ EV/EBITDA 3.4 7,236 5,008 3,000 1,366 $ $ $ (Click on the following icon in order to copy its contents into a spreadsheet.) Market Capitalization 39,057 Enterprise Value (EV) 15,295 22,648 29,431 47,060 33,745 32,143 29,119 8,103 5,791 EV/EBIT 5,471 1,575 4.8 $ $ EV/Sales 1.1x 0.8x 0.8x 1.3x 1.0x 0.8x 1.7x 0.6x P/E 6.1 $ $ EV/EBITDA 6.0x 6.3x 5.8x 6.5x 7.7x 7.3x 6.7x 3.4x P/Book 1.4 EV/EBIT 8.6x 10.5× 9.7x 8.9x 12.3x 19.2x 11.3x 4.8x P/E 10.2x 11.2x 11.0x 12.4x 16.6x 27.7x 11.0x 6.1x P/Book 2.9x 1.3x 2.3x 3.0x 1.9x 1.1x 1.5x 1.4x - X
Transcribed Image Text:Consider the following data,, for the airline industry for April 2019 (EV = enterprise value, Book = equity book value). Suppose Hawaiian Airlines (HA) has 50 million shares outstanding. Estimate Hawaiian Airlines' share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown (excluding Hawaiian Airlines). Calculate Hawaiian Airlines' share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) Hawaiian Airlines Median Implied EV Implied market cap. Implied share price Data table $ $ $ EV/Sales 0.60 Company Name Delta Air Lines (DAL) American Airlines (AAL) United Continental (UAL) Southwest Airlines (LUV) Alaska Air (ALK) JetBlue Airways (JBLU) SkyWest (SKYW) Hawaiian (HA) $ $ $ EV/EBITDA 3.4 7,236 5,008 3,000 1,366 $ $ $ (Click on the following icon in order to copy its contents into a spreadsheet.) Market Capitalization 39,057 Enterprise Value (EV) 15,295 22,648 29,431 47,060 33,745 32,143 29,119 8,103 5,791 EV/EBIT 5,471 1,575 4.8 $ $ EV/Sales 1.1x 0.8x 0.8x 1.3x 1.0x 0.8x 1.7x 0.6x P/E 6.1 $ $ EV/EBITDA 6.0x 6.3x 5.8x 6.5x 7.7x 7.3x 6.7x 3.4x P/Book 1.4 EV/EBIT 8.6x 10.5× 9.7x 8.9x 12.3x 19.2x 11.3x 4.8x P/E 10.2x 11.2x 11.0x 12.4x 16.6x 27.7x 11.0x 6.1x P/Book 2.9x 1.3x 2.3x 3.0x 1.9x 1.1x 1.5x 1.4x - X
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