Suppose Hawaiian Airlines (HA) has 50 million shares outstanding. Estimate Hawaiians share value using each of the

Question:

Suppose Hawaiian Airlines (HA) has 50 million shares outstanding. Estimate Hawaiian’s share value using each of the five valuation multiples in Problem 20, based on the median valuation multiple of the other seven airlines shown.

Data from Problem 20

Consider the following data for the airline industry for April 2019 (EV = enterprise value, Book = equity book value). Discuss the potential challenges of using multiples to value an airline.