10.Consider the following data LOADING... for the airline industry for July 2018 (EVequalsenterprise value, Bookequalsequity book value). Suppose Alaska Air (ALK) has 123 million shares outstanding. Estimate Alaska Air's share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown. Calculate Alaska Air's share values using each of the five valuation multiples below:

Data Table (Click on the following icon ein order to copy its contents into a spreadsheet.) Market Enterprise Value (EV) Company Name Alaska Air (ALK) Capitalization EVISales EV/EBITDA EVIEBIT P/E Forward P/E 6.7x 7,286 8,207 1.02x 5.1x 7.7x 12.5x Peer Data American Airlines (AAL) Delta Air Lines (DAL) 8.2x 37,327 0.87x 5.7x 10.5x 8.2x 17,879 8.0x 8.8x 35,580 1.02x 44,164 5.7x 10.8x Hawaiian (HA) 2,057 0.73x 3.4 4.1x 7.2x 2,023 5.8 JetBlue Airways (JBLU) 5.9x 4.9x 10.8x 5,450 5,814 0.80x 4.1x 1.56x 11.8 SkyWest (SKYW) Southwest Airlines (LUV) United Continental (UAL) 2,909 5,040 7.2x 12.6x 6.6 30,318 30,691 1.44x 6.9x 8.9x 8.6x 12.3x 9.3x 31,393 5.7x 21,961 0.80x 9.2x 11.4x Source: CapitallQ Data Table e following icon in order to copy its contents into a spreadsheet.) Market Enterprise Value (EV) Total Shares Name Capitalization EV/Sales EVIEBITDA EV/EBIT P/E Forward P/E 5.1x 123 ALK) 7,286 8,207 1.02x 6.7x 7.7x 12.5x irlines (AAL) 17,879 37,327 8.2x 8.2x 0.87x 5.7x 10.5x es (DAL) 5.7x 44,164 8.8x 35,580 1.02x 8.0x 10.8x 2,023 5.8x HA) 2,057 0.73x 3.4 4.1x 7.2x ays (JBLU) KYW) Airlines (LUV) tinental (UAL) 5,814 5,450 0.80x 4.1x 5.9x 4.9x 10.8x 5,040 12.6x 2,909 1.56x 7.2x 6.6x 11.8x 6.9x 12.3x 30,318 30,691 1.44x 8.9x 8.6x 0.80x 9.3x 21,961 31,393 9.2x 5.7x 11.4x pitallQ for the airline industry for July 2018 (EV enterprise value, Book equity book value). Suppose Alaska Air (ALK) has 123 million Consider the following data shares outstanding. Estimate Alaska Air's share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown Calculate Alaska Air's share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EV/EBITDA FWD P/E EV/Sales EV/EBIT P/E Alaska Air 1.02 5.1 6.7 7.7 12.5 Median Implied EV $ $ $ $ Implied market cap $ $ $ Implied share price EA EA LO Data Table (Click on the following icon ein order to copy its contents into a spreadsheet.) Market Enterprise Value (EV) Company Name Alaska Air (ALK) Capitalization EVISales EV/EBITDA EVIEBIT P/E Forward P/E 6.7x 7,286 8,207 1.02x 5.1x 7.7x 12.5x Peer Data American Airlines (AAL) Delta Air Lines (DAL) 8.2x 37,327 0.87x 5.7x 10.5x 8.2x 17,879 8.0x 8.8x 35,580 1.02x 44,164 5.7x 10.8x Hawaiian (HA) 2,057 0.73x 3.4 4.1x 7.2x 2,023 5.8 JetBlue Airways (JBLU) 5.9x 4.9x 10.8x 5,450 5,814 0.80x 4.1x 1.56x 11.8 SkyWest (SKYW) Southwest Airlines (LUV) United Continental (UAL) 2,909 5,040 7.2x 12.6x 6.6 30,318 30,691 1.44x 6.9x 8.9x 8.6x 12.3x 9.3x 31,393 5.7x 21,961 0.80x 9.2x 11.4x Source: CapitallQ Data Table e following icon in order to copy its contents into a spreadsheet.) Market Enterprise Value (EV) Total Shares Name Capitalization EV/Sales EVIEBITDA EV/EBIT P/E Forward P/E 5.1x 123 ALK) 7,286 8,207 1.02x 6.7x 7.7x 12.5x irlines (AAL) 17,879 37,327 8.2x 8.2x 0.87x 5.7x 10.5x es (DAL) 5.7x 44,164 8.8x 35,580 1.02x 8.0x 10.8x 2,023 5.8x HA) 2,057 0.73x 3.4 4.1x 7.2x ays (JBLU) KYW) Airlines (LUV) tinental (UAL) 5,814 5,450 0.80x 4.1x 5.9x 4.9x 10.8x 5,040 12.6x 2,909 1.56x 7.2x 6.6x 11.8x 6.9x 12.3x 30,318 30,691 1.44x 8.9x 8.6x 0.80x 9.3x 21,961 31,393 9.2x 5.7x 11.4x pitallQ for the airline industry for July 2018 (EV enterprise value, Book equity book value). Suppose Alaska Air (ALK) has 123 million Consider the following data shares outstanding. Estimate Alaska Air's share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown Calculate Alaska Air's share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EV/EBITDA FWD P/E EV/Sales EV/EBIT P/E Alaska Air 1.02 5.1 6.7 7.7 12.5 Median Implied EV $ $ $ $ Implied market cap $ $ $ Implied share price EA EA LO