= Consider the following data for the airline industry for July 2018 (EV = enterprise value, Book = equity book value). Suppose Alaska Air (ALK) has 122 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 (excluding Alaska Air). 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/Sales EV/EBITDA EV/EBIT P/E P/Book Alaska Air 1.02 5.1 6.7 7.7 12.5 Median Implied EV $ FA $ TA $ $ $ $ $ Implied market cap Implied share price $ $ FA $ $ TA $ EV/EBITDA EV/EBIT P/E EV/Sales 1.02x Forward P/E 12.5x 5.1x 7.7x 6.7x 8.2x 0.87x 8.2x Market Capitalization 7,286 17,879 35,580 2,023 5,450 2,909 30,318 21,961 Enterprise Value (EV) 8,207 37,327 44,164 2,057 5,814 5,040 30,691 31,393 Company Name Alaska Air (ALK) American Airlines (AAL) Delta Air Lines (DAL) Hawaiian (HA) JetBlue Airways (JBLU) SkyWest (SKYW) Southwest Airlines (LUV) United Continental (UAL) Source: Capital Q 5.7x 5.7x 3.4x 10.5x 10.8x 5.8x 8.0x 4.1x 5.9x 4.9x 1.02x 0.73x 0.80x 1.56x 1.44x 0.80x 4.1x 7.2x 8.8x 7.2x 10.8x 11.8% 12.3x 9.3x 6.9x 5.7x 12.6x 8.9x 9.2x 6.6x 8.6x 11.4x = Consider the following data for the airline industry for July 2018 (EV = enterprise value, Book = equity book value). Suppose Alaska Air (ALK) has 122 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 (excluding Alaska Air). 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/Sales EV/EBITDA EV/EBIT P/E P/Book Alaska Air 1.02 5.1 6.7 7.7 12.5 Median Implied EV $ FA $ TA $ $ $ $ $ Implied market cap Implied share price $ $ FA $ $ TA $ EV/EBITDA EV/EBIT P/E EV/Sales 1.02x Forward P/E 12.5x 5.1x 7.7x 6.7x 8.2x 0.87x 8.2x Market Capitalization 7,286 17,879 35,580 2,023 5,450 2,909 30,318 21,961 Enterprise Value (EV) 8,207 37,327 44,164 2,057 5,814 5,040 30,691 31,393 Company Name Alaska Air (ALK) American Airlines (AAL) Delta Air Lines (DAL) Hawaiian (HA) JetBlue Airways (JBLU) SkyWest (SKYW) Southwest Airlines (LUV) United Continental (UAL) Source: Capital Q 5.7x 5.7x 3.4x 10.5x 10.8x 5.8x 8.0x 4.1x 5.9x 4.9x 1.02x 0.73x 0.80x 1.56x 1.44x 0.80x 4.1x 7.2x 8.8x 7.2x 10.8x 11.8% 12.3x 9.3x 6.9x 5.7x 12.6x 8.9x 9.2x 6.6x 8.6x 11.4x