1 Estimate the equity value and stock price of Hershey food corporation using comparable companies valuation Hershey Foods Corp Industry Comparables Company Name Ticker Exchange Book Value of debt ($million) Common Shares Outstanding (millions) Stock Price (9 17 02) Market Cap ($million) Debt Equity EBIT ($million) Enterprise Value EBIT Multiple Cadbury Schweppes PLC ADS CSG NYSE 3,543 503 28 5 14,296 0 25 1,501 11 9 Hershey Foods Corp HSY NYSE 885 134 73 8 9,905 0 09 413 26 1 Jm Smucker Co SJM NYSE 150 50 37 6 1,862 0 08 59 33 9 Nestle S A Spon ADR NSRGY PK OTC 19,500 1,551 51 9 80,399 0 24 3,007 33 2 Sanfilippo John B Son JBSS NSDQ 52 9 6 7 61 0 85 18 6 1 Sherwood Brands Inc SHD AMEX 1 4 4 5 17 0 07 1 17 2 Tootsie Roll Industries Inc TR NYSE 8 52 31 0 1,610 0 00 101 16 1 Wrigley (Wm) Jr Co WWY NYSE 0 225 49 5 11,135 0 00 583 19 1

Question

1  Estimate the equity value and stock price of Hershey food corporation using comparable companies valuation  Hershey Foods Corp  Industry Comparables Company Name Ticker Exchange Book Value of debt ($million) Common Shares Outstanding (millions) Stock Price (9 17 02) Market Cap ($million) Debt  Equity EBIT ($million) Enterprise Value EBIT Multiple Cadbury Schweppes PLC  ADS CSG NYSE 3,543 503 28 5 14,296 0 25 1,501 11 9 Hershey Foods Corp HSY NYSE 885 134 73 8 9,905 0 09 413 26 1 Jm Smucker Co SJM NYSE 150 50 37 6 1,862 0 08 59 33 9 Nestle S A  Spon ADR NSRGY PK OTC 19,500 1,551 51 9 80,399 0 24 3,007 33 2 Sanfilippo John B   Son JBSS NSDQ 52 9 6 7 61 0 85 18 6 1 Sherwood Brands Inc SHD AMEX 1 4 4 5 17 0 07 1 17 2 Tootsie Roll Industries Inc TR NYSE 8 52 31 0 1,610 0 00 101 16 1 Wrigley (Wm) Jr Co WWY NYSE 0 225 49 5 11,135 0 00 583 19 1

Accepted Answer

The Answer is in the image, click to view ...

Question

1. Estimate the equity value and stock price of Hershey food corporation using comparable companies valuation. Hershey Foods Corp. Industry Comparables Company Name Ticker Exchange

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

			Hershey Foods Corp. Industry Comparables
Company Name	Ticker	Exchange	Book Value of debt ($million)	Common Shares Outstanding (millions)	Stock Price (9/17/02)	Market Cap ($million)	Debt/ Equity	EBIT ($million)	Enterprise Value/EBIT Multiple
Cadbury Schweppes PLC -ADS	CSG	NYSE	3,543	503	28.5	14,296	0.25	1,501	11.9
Hershey Foods Corp	HSY	NYSE	885	134	73.8	9,905	0.09	413	26.1
Jm Smucker Co	SJM	NYSE	150	50	37.6	1,862	0.08	59	33.9
Nestle S A -Spon ADR	NSRGY.PK	OTC	19,500	1,551	51.9	80,399	0.24	3,007	33.2
Sanfilippo John B & Son	JBSS	NSDQ	52	9	6.7	61	0.85	18	6.1
Sherwood Brands Inc	SHD	AMEX	1	4	4.5	17	0.07	1	17.2
Tootsie Roll Industries Inc	TR	NYSE	8	52	31.0	1,610	0.00	101	16.1
Wrigley (Wm) Jr Co	WWY	NYSE	0	225	49.5	11,135	0.00	583	19.1