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. 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 Alaska Air 1.0 5.1 6.7 7.7 Median Implied EV $ A A A Implied market cap Implied share price $ 0 0 0 $ P/Book 12.5 i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 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: CapitallQ 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 EV/Sales 1.02x 0.87x 1.02x 0.73x 0.80x 1.56x EV/EBITDA 5.1 x 5.7x 5.7x 3.4x 4.1x 7.2x 1.44x 0.80x 6.9x 5.7x 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. 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 Alaska Air 1.0 5.1 6.7 7.7 Median Implied EV $ A A A Implied market cap Implied share price $ 0 0 0 $ P/Book 12.5 i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 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: CapitallQ 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 EV/Sales 1.02x 0.87x 1.02x 0.73x 0.80x 1.56x EV/EBITDA 5.1 x 5.7x 5.7x 3.4x 4.1x 7.2x 1.44x 0.80x 6.9x 5.7x