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25 Consider the following data for the airline industry for December 2015 (EV-enterprise value, Book-equity book value). Suppose Hawaiian Airlines (HA) has 53 million shares
25
Consider the following data for the airline industry for December 2015 (EV-enterprise value, Book-equity book value). Suppose Hawaiian Airlines (HA) has 53 million shares outstanding. Estimate Hawaiian's share value using each of the five valuation multiples shown hereEB, based on the median valuation multiple of the other seven airlines shown Calculate Hawaiian's share values using each of the five valuation multiples below: (Round the median to one decimal place. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EVISales EVIEBITDA EVIEBIT PIE P/Book Hawaiian Median Implied EV Implied market cap Implied share price 1.0 5.3 6.9 15.1 Data Table S (Click on the Icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Market Enterprise P/E 15.0x 6.2x 3.4x 16.1x 13.4x 13.8x 21.2x 15.1x P/Book 4.0x 7.5x 2.6x Company Name Delta Air Lines (DAL) American Airlines (AAL) United Continental (UAL) Southwest Airlines (LUV) Alaska Air (ALK) JetBlue Airways (JBLU) SkyWest (SKYW) Hawaiian (HA) Capitalization Value (EV) EVISales EVIEBITDA EVIEBIT $40,857 $27,249 $22,000 $28,499 $10,396 $7,338 $1,039 $1,974 $45,846 S38,937 $28,522 $28,125 $9,870 S8,189 $2,590 $2,281 0.9x 0.7x 1.5x 1.8x 1.3x 0.8x 1.0x 6.0x 4.5x 4.2x 6.0x 6.3x 6.1x 5.2x 5.3x 7.6x 5.5x 5.6x 7.4x 7.9x 7.9x 11.1x 6.9x 4.4x 2.4x 0.7x 5.3x Enter any number in the edit fields andStep by Step Solution
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