Panera Bread Company's book value per share is $27.73 and its forward earnings estimate per share is $7.23. The following information is also available for Panera and a peer group of companies from the restaurant sector. Ticker Panera Bread (PNRA) Tim Hortons (THI) Papa John's Intl (PZZA) Einstein Noah (BAGL) Chipotle Mexican Grill (CMG) Dunkin' Brands (DNKN) Buffalo Wild Wings (BWLD) Sonic (SONC) Texas Roadhouse (TXRH) Market Cap PB ($ mil) Current Forward PE EPS 5-Year Historical (FY1) Growth Rate (T 4Q) ROE (FY1) 26.02% 24.71% 15.21% 36.73% 17.13% 36.19% 2.52% 19.91% 33.44% 22.30% 0.00% 39.17% $0 $8,590 7.31 17.60 $1,930 11.18 25.07 $272 7.59 14.35 $16,430 40.97 11.25 $5,110 13.32 26.62 $2,740 6.11 31.19 $1,180 15.17 21.65 $1,950 3.32 21.11 21.97% 16.68% (3.86) % 53.69% 16.88% 14.07% Debt-to- Equity 0.00 0.47 0.64 3.28 0.00 4.75 0.00 6.12 0.09 b. Assume that you use as comparables the following set of companies: THI, PZZA, and CMG. Estimate Panera's equity intrinsic value per share using the PB ratio from these peer companies. Round answer to two decimal places. $0 c. Use the same comparables as in part b and estimate Panera's equity intrinsic value per share using the PE ratio from these peer companies. Round answer to two decimal places.
Panera Bread Company's book value per share is $27.73 and its forward earnings estimate per share is $7.23. The following information is also available for Panera and a peer group of companies from the restaurant sector. Ticker Panera Bread (PNRA) Tim Hortons (THI) Papa John's Intl (PZZA) Einstein Noah (BAGL) Chipotle Mexican Grill (CMG) Dunkin' Brands (DNKN) Buffalo Wild Wings (BWLD) Sonic (SONC) Texas Roadhouse (TXRH) Market Cap PB ($ mil) Current Forward PE EPS 5-Year Historical (FY1) Growth Rate (T 4Q) ROE (FY1) 26.02% 24.71% 15.21% 36.73% 17.13% 36.19% 2.52% 19.91% 33.44% 22.30% 0.00% 39.17% $0 $8,590 7.31 17.60 $1,930 11.18 25.07 $272 7.59 14.35 $16,430 40.97 11.25 $5,110 13.32 26.62 $2,740 6.11 31.19 $1,180 15.17 21.65 $1,950 3.32 21.11 21.97% 16.68% (3.86) % 53.69% 16.88% 14.07% Debt-to- Equity 0.00 0.47 0.64 3.28 0.00 4.75 0.00 6.12 0.09 b. Assume that you use as comparables the following set of companies: THI, PZZA, and CMG. Estimate Panera's equity intrinsic value per share using the PB ratio from these peer companies. Round answer to two decimal places. $0 c. Use the same comparables as in part b and estimate Panera's equity intrinsic value per share using the PE ratio from these peer companies. Round answer to two decimal places.
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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Transcribed Image Text:Identifying Comparables and Valuation Using PB and PE
Panera Bread Company's book value per share is $27.73 and its forward earnings estimate per share is $7.23. The following information is also available for Panera and
a peer group of companies from the restaurant sector.
Ticker
Panera Bread (PNRA)
Tim Hortons (THI)
Papa John's Intl (PZZA)
Einstein Noah (BAGL)
Chipotle Mexican Grill (CMG)
Dunkin' Brands (DNKN)
Buffalo Wild Wings (BWLD)
Sonic (SONC)
Texas Roadhouse (TXRH)
Market
Forward EPS 5-Year
PE
PB
Cap
Historical ROE
($ mil) Current (FY1) Growth Rate (T 4Q)
26.02% 24.71%
15.21% 36.73%
17.13% 36.19%
2.52% 19.91%
33.44% 22.30%
0.00% 39.17%
21.97% 16.68%
(3.86) % 53.69%
16.88% 14.07%
$8,590 7.31
$1,930
11.18
7.59
11.25
13.32
6.11
15.17
3.32
$0
$272
$16,430
$5,110
$2,740
$1,180
$1,950
17.60
25.07
14.35
40.97
26.62
31.19
21.65
21.11
Debt-to-
Equity
0.00
0.47
0.64
3.28
0.00
4.75
0.00
6.12
0.09
b. Assume that you use as comparables the following set of companies: THI, PZZA, and CMG. Estimate Panera's equity intrinsic value per share using the PB ratio from
these peer companies.
Round answer to two decimal places.
$ 0
c. Use the same comparables as in part b and estimate Panera's equity intrinsic value per share using the PE ratio from these peer companies.
Round answer to two decimal places.
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