Question
#29. Suppose Hawaiian Airlines (HA) has 53 million shares outstanding. Estimate Hawaiians share value using each of the five valuation multiples in Table, based on
#29. Suppose Hawaiian Airlines (HA) has 53 million shares outstanding. Estimate Hawaiians share value using each of the five valuation multiples in Table, based on the median valuation multiple of the other seven airlines shown.
| Company Name | Market Cap | EV | EV/Sales | EV/EBITDA | EV/EBIT | P/E | P/Book |
| Delta Air Lines (DAL) | 40,857 | 45,846 | 1.1x | 6.0x | 7.6x | 15.0x | 4.0x |
| American Airlines (AAL) | 27,249 | 38,937 | 0.9x | 4.5x | 5.5x | 6.2x | 7.5x |
| United Continental (UAL) | 22,000 | 28,522 | 0.7x | 4.2x | 5.6x | 3.4x | 2.6x |
| Southwest Airlines (LUV) | 28,499 | 28,125 | 1.5x | 6.0x | 7.4x | 16.1x | 4.1x |
| Alaska Air (ALK) | 10,396 | 9,870 | 1.8x | 6.3x | 7.9x | 13.4x | 4.4x |
| JetBlue Airways (JBLU) | 7,338 | 8,189 | 1.3x | 6.1x | 7.9x | 13.8x | 2.4x |
| SkyWest (SKYW) | 1,039 | 2,590 | 0.8x | 5.2x | 11.1x | 21.2x | 0.7x |
| Hawaiian (HA) | 1,974 | 2,281 | 1.0x | 5.3x | 6.9x | 15.1x | 5.3x |
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
