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For the Crocs case please address the following questions: Which of the comparable companies appears to be a good match to Crocs at the time
For the Crocs case please address the following questions:
- Which of the comparable companies appears to be a good match to Crocs at the time of the case? Which would be a good match in five years? Use these multiples to provide additional estimates of the value of Crocs (in other words, calculate a value for Crocs using a current multiple, and calculate a value for Crocs using Yeungs cash flow model but with a terminal value based on a a multiple).
- What would you consider reasonable, high, and low growth estimates (median, 25th, and 75th percentile growth estimates) for 2008 and for the long run?
- Value the company under your best estimate of future growth rates and at the high and low estimates from assignment question 2. What changes in the growth assumptions would rationalize the new Crocs stock price?
- What is your opinion of the assumed profit margins? What alternative assumptions would you consider reasonable?
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