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In: Finance

In July 2013, Nike had EPS of $2.52 and a book value of equity of $12.48...

In July 2013, Nike had EPS of $2.52 and a book value of equity of $12.48 per share.

a. Using the average P/E mulitple in Table 2, estimate Nike's share price.

b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 2?

c. Using the average price-to-book value mlutiple in Table 2, estimate Nike's share price.

d. What range of share prices do you estimate based on the highest and lowest price-to-book value mulitples in Table 2?

Table 2
Name Market Cap ($ million) Enterprise Value ($ million) P/E Price/Book Enterprise Value/Sales Enterprise Value/ EBITDA
Nike, Inc. 55,970 54,023 23.29 5.07 2.03 15.71
Adidas AG 23,105 23,317 32.33 3.06 1.20 11.88
Puma AG 4,330 4,085 70.56 1.96 0.96 9.34
Wolverine World Wide 2,910 3,981 37.6 4.13 1.22 9.28
Steven Madden, Ltd. 2,320 2,140 18.4 3.68 1.74 10.70
Deckers Outdoor Corp. 1,990 1,923 16.74 2.67 1.36 8.73
Crocs, Inc. 1,470 1,240 11.46 2.4 1.10 6.74
Skechers U.S.A. 1,340 1,213 67.41 1.54 0.78 18.16
Weyco Group 301 325 16.53 1.71 1.11 9.69
R. G. Barry Corp. 197 174 14.92 2.31 1.19 6.44
Rocky Brands, Inc. 113 132 12.46 0.89 0.58 6.61

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