Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here, E, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here, E, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
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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A-D please
Transcribed Image Text:Data table
(Click on the following icon
in order to copy its contents into a spreadsheet.)
P
Price
Enterprise Value
Enterprise Value
E
Вook
Sales
EBITDA
Average
23.99
7.46
2.17
19.98
Maximum
+ 81%
+ 193%
+ 96%
+ 73%
Minimum
- 45%
- 83%
-80%
- 81%
Print
Done
Transcribed Image Text:Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million
shares outstanding.
a. Using the average enterprise value to sales multiple in the table here, E, estimate Nike's share price.
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above?
c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price.
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
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