Identifying Comparables and Valuation Using PB and PE MarineMax Inc.’s equity book value per share is $9.31 and its forward earnings estimate per share is $0.58. The following information is also available for Marinemax and a peer group of companies

(identified by ticker symbol) from the leisure goods sector.

Ticker Market Cap

($ mil.)

PB Current Forward PE (FY1)

EPS 5-Year Historical Growth Rate ROE

(T 4Q)

Debt-to-Equity

(Prior Y)

HZO . . . . — — — (37.59)% 7.54% 0.57 CPRT . . . $4,470 5.37 19.18 15.98% 24.53% 0.44 BC . . . . . 4,120 3.89 14.74 13.19% 138.91% 0.44 JAKK . . . 158 0.79 65.45 (6.84)% (63.76)% 0.84 POOL . . . 2,670 9.37 20.65 (10.19)% 34.28% 0.86 CKH . . . . 1,770 1.30 18.64 (22.98)% 2.19% 0.51 PII . . . . . . 8,720 15.91 17.17 41.64% 62.16% 0.54 Required

a. Identify a set of two companies from this list to use as comparables for estimating the equity intrinsic value of Marinemax using the market multiples approach.

b. Assume that you use as comparables the following set of companies: CPRT and CKH. Estimate Marinemax’s equity intrinsic value per share using the PB ratio from these peer companies.

c. Use the same comparables as in part b and estimate Marinemax’s equity intrinsic value per share using the PE ratio from these peer companies.