Suppose that in July? 2013, Nike Inc. had sales of $25,217 million, EBITDA of $3,247 million,...

Suppose that in July? 2013, Nike Inc. had sales of $25,217 million, EBITDA of $3,247 million, excess cas of 3,337 million, $1,383 million of debt, and 901.2 shares outstanding

	StartFraction Upper P Over Upper E EndFractionPE	StartFraction Price Over Book EndFractionPriceBook	StartFraction Enterprise Value Over Sales EndFractionEnterprise ValueSales	StartFraction Enterprise Value Over EBITDA EndFractionEnterprise ValueEBITDA
Average	29.84	2.44	1.12	9.76
Maximum	plus+136%	plus+70%	plus+55%	plus+86%
Minimum	minus?626%	minus?63%	minus?48?%	minus?34%

a. Using the average enterprise value to sales multiple in the table? above, 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?

Expert Solution

jeff jeffy answered 2 years ago

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