E15-28. Identifying Comparables and Valuation Using PB and PE Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Market Cap (5 mil.) ROE (T 40) Ticker TLRD GCO . ZUMZ..... PB Forward EPS 5-Year Historical Current PE (FY1) Growth Rate (0.47)% 1.00 9.699 (323.73)% 1.95 14.17 3.28% 2.07 13.19 (37.69)% 1.00 19.69 9.37% 1.68 11.6 5.51% 0.75 5.458 (1.74% 585.7 789.7 1.147.0 988.2 293.7 4,760.0 GES ANF ...... TLYS M. Debt-to-Equity (Prior Year) 2.53 0.13 0.00 0.56 0.25 0.00 0.74 22.50% (5.86)% 13.85% 1.90% 6.35% 13.93% 16.70% Required a. Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach. b. Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TURD's equity intrinsic value using the PB ratio from these peer companies. c. Use the same comparables as in part band estimate TLRD's equity intrinsic value using the PE ratio from these peer companies. E15-28. Identifying Comparables and Valuation Using PB and PE Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Market Cap (5 mil.) ROE (T 40) Ticker TLRD GCO . ZUMZ..... PB Forward EPS 5-Year Historical Current PE (FY1) Growth Rate (0.47)% 1.00 9.699 (323.73)% 1.95 14.17 3.28% 2.07 13.19 (37.69)% 1.00 19.69 9.37% 1.68 11.6 5.51% 0.75 5.458 (1.74% 585.7 789.7 1.147.0 988.2 293.7 4,760.0 GES ANF ...... TLYS M. Debt-to-Equity (Prior Year) 2.53 0.13 0.00 0.56 0.25 0.00 0.74 22.50% (5.86)% 13.85% 1.90% 6.35% 13.93% 16.70% Required a. Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach. b. Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TURD's equity intrinsic value using the PB ratio from these peer companies. c. Use the same comparables as in part band estimate TLRD's equity intrinsic value using the PE ratio from these peer companies