Suppose that in July 2013, Nike had sales of $25,313 million, EBITDA of $3,254 million, excess cash

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Suppose that in July 2013, Nike had sales of $25,313 million, EBITDA of $3,254 million, excess cash of $3,337 million, $1,390 million of debt, and 893.6 million shares outstanding.

a. Using the average enterprise value to sales multiple in Table 10.1, 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 Table 10.1?

c. Using the average enterprise value to EBITDA multiple in Table 10.1, 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 Table 10.1?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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