Consider the following data LOADING... for the airline industry for July 2018 (EVenterprise value, Bookequity 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).

Question content area bottom Part 1 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 $ $ $ $

Implied market cap $ $ $ $ $ $

Implied share price $ $ $ $ $ $

Company Name

Market Capitalization

Enterprise Value (EV)

EV/Sales

EV/EBITDA

EV/EBIT

P/E

Forward P/E

Alaska Air (ALK)

7,286

8,207

1.02x

5.1x

6.7x

7.7x

12.5x

American Airlines (AAL)

17,879

37,327

0.87x

5.7x

8.2x

10.5x

8.2x

Delta Air Lines (DAL)

35,580

44,164

1.02x

5.7x

8.0x

10.8x

8.8x

Hawaiian (HA)

2,023

2,057

0.73x

3.4x

4.1x

5.8x

7.2x

JetBlue Airways (JBLU)

5,450

5,814

0.80x

4.1x

5.9x

4.9x

10.8x

SkyWest (SKYW)

2,909

5,040

1.56x

7.2x

12.6x

6.6x

11.8x

Southwest Airlines (LUV)

30,318

30,691

1.44x

6.9x

8.9x

8.6x

12.3x

United Continental (UAL)

21,961

31,393

0.80x

5.7x

9.2x

11.4x

9.3x

Source:

CapitalIQ