Question
a. Based on the average PE multiple of similar firms, estimate TXRHs share price. Also, estimate share price using the minimum and maximum PE. b.
a. Based on the average PE multiple of similar firms, estimate TXRHs share price. Also, estimate share price using the minimum and maximum PE.
b. Using the average price-to-book value multiple of similar firms, estimate TXRHs share price. Also, estimate share price using the minimum and maximum price to book value.
c. Using the average enterprise value to sales multiple of similar firms, estimate TXRHs share price. Also, estimate share price using the minimum and maximum enterprise value to sales. (Note: Share price comes from the value of equity, not the enterprise value!)
d. Using the average enterprise value to EBITDA multiple of similar firms, estimate TXRHs share price. Also, estimate share price using the minimum and maximum enterprise value to EBITDA.
2. Suppose that in January 2021 Texas Roadhouse has EPS of $0.45, a book value of equity of $13.55 per share, sales of $2,398M, EBITDA of $142M, excess cash of $363M,$1,038M in debt, and 69.6M shares outstanding. Consider the following data for the casual dining industry as of January 2021. 2. Suppose that in January 2021 Texas Roadhouse has EPS of $0.45, a book value of equity of $13.55 per share, sales of $2,398M, EBITDA of $142M, excess cash of $363M,$1,038M in debt, and 69.6M shares outstanding. Consider the following data for the casual dining industry as of January 2021Step by Step Solution
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