Identifying Comparables and Valuation using PB and PE Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Market Ticker Cap($ mil.) TLRD GCO ZUMZ GES ANF TLYS M PB Forward Current PE (FY1) 1.00 585.7 9.699 789.7 1.95 14.17 1,147.0 2.07 13.19 988.2 293.7 1.00 19.69 11.6 1.68 4,760.0 0.75 5.458 EPS 5-Year Historical ROE Growth Rate (T 4Q) (0.47% 22.50% (323.73) % (5.86)% 3.28% 13.85% (37.69% 1,90% 9.37% 6.35% 5.51% 13.93 % (1.74)% 16.70% Debt-to- Equity (Prior Year) 2.53 0.13 0.00 0.56 0.25 0.00 0.74 (a) Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach. ZUMZ, TLYS, M✔ (b) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD's equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places for your calculation. Round your answer to the nearest million.) $ 304.01 x million (c) Use the same comparables as in part b and estimate TLRD's equity intrinsic value using the PE ratio from these peer companies. (Round average PE ratio to two decimal places for your calculation. Round your answer to the nearest million.) s 646.12 x million
Identifying Comparables and Valuation using PB and PE Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Market Ticker Cap($ mil.) TLRD GCO ZUMZ GES ANF TLYS M PB Forward Current PE (FY1) 1.00 585.7 9.699 789.7 1.95 14.17 1,147.0 2.07 13.19 988.2 293.7 1.00 19.69 11.6 1.68 4,760.0 0.75 5.458 EPS 5-Year Historical ROE Growth Rate (T 4Q) (0.47% 22.50% (323.73) % (5.86)% 3.28% 13.85% (37.69% 1,90% 9.37% 6.35% 5.51% 13.93 % (1.74)% 16.70% Debt-to- Equity (Prior Year) 2.53 0.13 0.00 0.56 0.25 0.00 0.74 (a) Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach. ZUMZ, TLYS, M✔ (b) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD's equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places for your calculation. Round your answer to the nearest million.) $ 304.01 x million (c) Use the same comparables as in part b and estimate TLRD's equity intrinsic value using the PE ratio from these peer companies. (Round average PE ratio to two decimal places for your calculation. Round your answer to the nearest million.) s 646.12 x million
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
Related questions
Question
Transcribed Image Text:Identifying Comparables and Valuation using PB and PE
Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD
and a peer group of companies (identified by ticker symbol) from the specialty retail sector.
Market
Ticker Cap($ mil.)
TLRD
GCO
ZUMZ
GES
ANF
TLYS
M
585.7
789.7
1,147,0
988.2
293.7
4,760.0
PB Forward
Current PE (FY1)
1.00 9.699
1.95 14.17
2.07
13.19
1.00 19.69
1.68 11.6
0.75 5.458
EPS 5-Year
Historical ROE
Growth Rate (T 4Q)
(0.47% 22.50%
(323.73) (5.86 ) %
3.28% 13.85%
(37.69% 1.90%
9.37% 6.35%
5.51% 13,93%
(1.74 % 16.70%
Debt-to-
Equity
(Prior Year)
2.53
0.13
0.00
0.56
0.25
0.00
0.74
(a) Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach.
ZUMZ, TLYS, M +
(b) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD's equity intrinsic value using the PB ratio from these peer companies. (Round average PB
ratio to two decimal places for your calculation. Round your answer to the nearest million.)
$ 304.01
x million
(c) Use the same comparables as in part b and estimate TLRD's equity intrinsic value using the PE ratio from these peer companies. (Round average PE ratio to two decimal places for your
calculation. Round your answer to the nearest million.)
$646.12
x million
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education