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In: Finance

Suppose that in July​ 2013, Nike Inc. had EPS of ​$2.36 and a book value of...

Suppose that in July​ 2013, Nike Inc. had EPS of ​$2.36 and a book value of equity of ​$13.27 per share.

P/e Price/Book Enterprise Value/Sales Enterprise Value/EBITDA
Average 29.84 2.44 1.12 9.76
Max + 136% + 70% +55% +86%
Min -62% -63% -63% - 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?

Solutions

Expert Solution

jeff jeffy answered 2 years ago
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