Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share. Enterprise Value Enterprise Value EBITDA Price Вook Sales Average 29.84 2.44 1.12 9.76 Maximum + 136% + 55% + 70% - 63% + 86% Minimum -62% - 48% - 34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price-to-book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? Range of prices: The highest price will be $. (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? Range of prices: The highest price will be $ (Round the nearest cent.)
Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share. Enterprise Value Enterprise Value EBITDA Price Вook Sales Average 29.84 2.44 1.12 9.76 Maximum + 136% + 55% + 70% - 63% + 86% Minimum -62% - 48% - 34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price-to-book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? Range of prices: The highest price will be $. (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? Range of prices: The highest price will be $ (Round the nearest cent.)
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:Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share.
Price
Enterprise Value
Enterprise Value
E
Вook
Sales
EBITDA
Average
29.84
2.44
1.12
9.76
Maximum
+ 136%
+ 70%
+ 55%
+ 86%
Minimum
- 62%
- 63%
- 48%
- 34%
a. Using the average P/E multiple from the table above, estimate Nike's share price.
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above?
c. Using the average price to book value 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 price-to-book value multiples in the table above?
a. Using the average P/E multiple from the table above, estimate Nike's share price.
Nike's share price for this case will be $
(Round to the nearest cent.)
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above?
Range of prices:
The highest price will be $
(Round to the nearest cent.)
The lowest price will be $
(Round to the nearest cent.)
c. Using the average price to book value multiple in the table above, estimate Nike's share price.
Nike's share price for this case will be $
(Round to the nearest cent.)
d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above?
Range of prices:
The highest price will be $
(Round to the nearest cent.)
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