**Nike Inc. Financial Estimation (April 2019)**In April 2019, Nike Inc. recorded the following financial statistics:- **Sales:** $36,367 million- **EBITDA:** $5,229 million- **Excess Cash:** $5,238 million- **Debt:** $3,804 million- **Shares Outstanding:** 1,583.2 million### Estimation Tasks**a. Share Price Estimation Using Enterprise Value to Sales Multiple:**Utilize the average enterprise value to sales multiple in the table to estimate Nike's share price.**b. Range of Share Prices Using High-Low Enterprise Value to Sales Multiples:** Estimate the range of share prices based on the highest and lowest enterprise value to sales multiples.**c. Share Price Estimation Using Enterprise Value to EBITDA Multiple:**Utilize the average enterprise value to EBITDA multiple in the table to estimate Nike's share price.**d. Range of Share Prices Using High-Low Enterprise Value to EBITDA Multiples:**Estimate the range of share prices based on the highest and lowest enterprise value to EBITDA multiples.### Data Table| | P/E | Price/Book | Enterprise Value/Sales | Enterprise Value/EBITDA ||-------------------|--------|------------|-------------------------|-------------------------|| **Average** | 23.99 | 7.46 | 2.17 | 19.98 || **Maximum** | +81% | +193% | +96% | +73% || **Minimum** | -45% | -83% | -80% | -81% |- Click the provided icon to copy into a spreadsheet for further analysis.### ExplanationThe table above lists financial multiples often used in valuation:- **P/E (Price to Earnings)** reflects how much investors are willing to pay per dollar of earnings.- **Price/Book** compares Nike's market value to its book value.- **Enterprise Value/Sales** and **Enterprise Value/EBITDA** indicate valuation in relation to revenue and earnings before interest, tax, depreciation, and amortization, respectively.These multiples offer insights into potential share price estimations by comparing similar metrics across the industry. Use the variances in max and min values to estimate higher and lower potential outcomes in stock price.

Name: **Nike Inc. Financial Estimation (April 2019)**In April 2019, Nike In
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Description: **Nike Inc. Financial Estimation (April 2019)**In April 2019, Nike Inc. recorded the following financial statistics:- **Sales:** $36,367 million- **EBITDA:** $5,229 million- **Excess Cash:** $5,238 million- **Debt:** $3,804 million- **Shares Outstan

Here,Sales = $36,367millionEBITDA = $5229 millionExcess cash = $5238 millionDebt = $3804…

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Suppose that in April 2019, Nike Inc. had sales of $36,367 million, EBITDA of $5,229 million, excess cash of $5,238 million, $3,804 million of debt, and 1,583.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here,, 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? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Price P E Book 7.46 + 193% - 83% Average Maximum Minimum 23.99 +81% -45% Print Done Enterprise Value Sales 2.17 +96% - 80% Enterprise Value EBITDA 19.98 + 73% - 81% - X

Suppose that in April 2019, Nike Inc. had sales of $36,367 million, EBITDA of $5,229 million, excess cash of $5,238 million, $3,804 million of debt, and 1,583.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here,, 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? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Price P E Book 7.46 + 193% - 83% Average Maximum Minimum 23.99 +81% -45% Print Done Enterprise Value Sales 2.17 +96% - 80% Enterprise Value EBITDA 19.98 + 73% - 81% - X

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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