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Consider the following data for the airline industry for July 2018 (EV = enterprise value, Book = equity book value). Suppose Alaska Air (ALK) has
Consider the following data for the airline industry for July 2018 (EV = enterprise value, Book = equity book value). Suppose Alaska Air (ALK) has 123 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.) P/E EV/Sales 1.02 EV/EBITDA 5.1 EV/EBIT 6.7 7.7 Alaska Air Median Implied EV Implied market cap Implied share price P/Book 12.5 $ $ $ GA $ BA $
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