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(Click on the following icon in order to copy its contents into a spreadsheet.) 0 1 2 3 4 433.0 Year Earnings & FCF Forecast
(Click on the following icon in order to copy its contents into a spreadsheet.) 0 1 2 3 4 433.0 Year Earnings & FCF Forecast ($ million) 1 Sales 2. Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General & Admin. 6 Depreciation 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (21.5) 7.0 (7.7) (6.3) 25.3 516.0 547.0 574.3 10.3% 6.0% 5.0% (345.7) (366.5) (384.8) 170.3 180.5 189.5 (103.2) (109.4) (114.9) (7.5) (9.0) (9.5) 59.6 62.1 65.2 (23.8) (24.8) (26.1) 7.5 9.0 9.5 (10.0) (9.9) (10.4) (8.6) (5.6) (4.9) 24.6 30.8 33.3 7 EBIT 8 9 Less: Income tax at 40% Plus: Depreciation Less: Capital Expenditures Less: Increases in NWC 10 11 12 Free Cash Flow In addition to footwear, Kenneth Cole Productions designs and sources handbags, apparel, and other accessories. decide, therefore, to consider comparables for KCP outside the footwear industry. You also know the following about KCP: it has sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, EPS of $1.65, book value of equity of $12.05 per share, and 21 million shares outstanding. a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 9.63 and a P/E multiple of 16.06. What share price would you estimate for KCP using each of these multiples, based on the data for KCP? b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 8.58 and a P/E multiple 16.31. What share price would you estimate for KCP using each of these multiples based on the data for KCP? a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 9.63 and a P/E multiple of 16.06. What share price would you estimate for KCP using each of these multiples, based on the data for KCP? Using the Enterprise value/EBITDA ratio for Fossil the price is $ (Round to the nearest cent.)
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