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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

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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 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. 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 1.0 87 Alaska Air Median (without ALK) Implied EV Implied market cap Implied share price GAGA Enter any number in the edit fields and then click Check Answer PIE EVIEBITDA 5.1x EV/EBIT 6.7x 7.7x (Click on the following icon in order to copy its contents into a spreadsheet.) Market Enterprise Company Name Capitalization Value (EV) EV/Sales Alaska Air (ALK) 7,286 8,207 1.02x Peer Data American Airlines (AAL) 17,879 37,327 0.87% Delta Air Lines (DAL) 35,580 44,164 1.02x Hawaiian (HA) 2,023 2,057 0.73x JetBlue Airways (JBLU) 5,450 5,814 0.80x SkyWest (SKYW) 2,909 5,040 1.56x Southwest Airlines (LUV) 30,318 30,691 1.44x United Continental (UAL) 21,961 31,393 0.80x 5.7x 5.7x 3.4x 4.1x 7.2x 6.9x 5.7x 8.2x 8.0x 4.1x 5.9x 12.6x 8.9x 9.2x 10.5x 10.8x 5.8x 4.9 6.6x 8.6x 11.4x der to copy its contents into a spreadsheet.) irket alization 7.286 Enterprise Value (EV) EV/Sales 1.02x EV/EBITDA 5.1x EVIEBIT 6.7x PIE 7.7x Forward PIE 12.5x Total Shares 122 8207 17.879 35,580 2,023 5,450 2,909 30.318 21,961 37.327 44,164 2,057 5,814 5,040 30.691 31,393 0.87% 1.02x 0.73x 0.80x 1.56x 1.44x 0.80x 5.7x 5.7x 3.4x 4.1x 7.2x 6.9x 5.7x 8.2x 8.0x 4.1x 5.9x 12.6x 8.9x 9.2x 10.5x 10.8x 5.8x 4.9x 6.6x 8.6x 11.4x 8. 2x 8.8% 7.2x 10.8x 11.8% 12.3x 9.3x Print Done

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