Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shar . Using the average enterprise value to EBITDA multiple from the table here,, estimate Nike's share price. . What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? . Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ 52.78. (Round to the nearest cent.) . What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $106.27. (Round to the nearest cent.) Data table

Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shar . Using the average enterprise value to EBITDA multiple from the table here,, estimate Nike's share price. . What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? . Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ 52.78. (Round to the nearest cent.) . What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $106.27. (Round to the nearest cent.) Data table

Name: Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, ex
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Description: Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shares outstanding.a. Using the average enterprise value to EBITDA multiple from the table here,, estimat

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 66P

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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Question

Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shares outstanding.
a. Using the average enterprise value to EBITDA multiple from 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 EBITDA multiples in the table above?
a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price.
Nike's share price for this case will be $ 52.78. (Round to the nearest cent.)
b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table?
The highest price will be $106.27. (Round to the nearest cent.)
Data table
TABLE 10.1
Stock Prices and
Multiples for the
Footwear Industry
(excluding Nike), July
2022
Name
Nike, Inc.
Adidas AG
Under Armour
Puma AG
Skechers U.S.A.
Wolverine World Wide
Steven Madden, Ltd.
Rocky Brands, Inc.
Market
Capitalization
($ million)
169,857
Enterprise
Value
($ million)
1,69,487 26.98
33,002
25.63
3,548 15.63
9,888
29.84
6,342
7.41
2,576
41.67
2,455
10.81
520
10.74
Average (excl. NKE)
20.25
31,608
3,713
9,584
5,575
1,615
2,608
247
P/E Price/Book
10.42
4.87
2.05
3.83
1.63
2.70
3.04
1.21
2.76
Enterprise
Value/
EBITDA
23.8
11.13
7.43
15.82
8.51
23.04
7.50
9.08
11.79

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