Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello I have trouble with this assignment. Can you please help me with this. This assignment requires you, among other things, to estimate the stock

image text in transcribed

Hello I have trouble with this assignment. Can you please help me with this.

image text in transcribed This assignment requires you, among other things, to estimate the stock price for your selected company, and provide the analysis as requested. You will need to use Financial Data of your selected company and its peer companies. Choose several peer companies for your selected company and justify your choice. Choose several valuation multiples and using comparable ratios of peer companies and your selected company, estimate the company's equity value. It is required for this question to list your major assumptions and properly reference sources of information that you used in your calculations. (in millions) Peer Companies: Ticker PERIOD ENDING (in millions) (in millions) (in millions) Amazon Ebay Inc AMZN EBAY AutoZone Inc AZO 8/27/2017 Best Buy Inc BBY From Income Statement and Balance Sheet Balance Sheet Assets Cash & cash equivalents Short-term Investments Receivables Inventories Prepaid Expenses Current assets held for sale Other Current Assets $19,334 $6,647 $8,339 $11,641 $1,816 $5,333 $592 $1,134 $281 $3,882 $2,240 $1,681 $1,347 $4,864 $155 $384 $293 Total Current Assets Net Property, Plant & Equipment Intangible Assets Total Assets Liabilities Accounts payable Unredeemed gift card liabilities Deferred revenue Accrued Compensation and related expenes Accrued liabilities Short/ Current long term debt Current maturities of long-term debt Accrued Income taxes Other Current Liabilities Total current liabilities Long Term Liabitities Deffered Liability charges Long-term debt Other Liabilities Total Liabilities total stockholders' equity Total Liabilities & Shareholder's Equity Income Statement $45,781 $33,837 $3,784 $83,402 $8,875 $10,369 $4,603 $23,847 $4,611 $4,256 $392 $9,260 10516 $2,915 $425 $13,856 $39,048 $2,286 $4,169 6,233 $1,451 $44 $4,768 $43,816 $110 $3,847 $4,766 $845 $7,122 $7,694 $12,607 $64,117 $19,285 $83,402 $1,888 $7,509 $64 $13,308 $10,539 $23,847 $5,081 $470 $10,688 ($1,428) $9,260 $1,321 $704 $9,147 $4,709 $13,856 Revenue Revenue Cost of Goods Sold General, administrative and other Restructuring charges Goodwill impairement Depreciation and amortization Total expenses Operating income Gain on sale of investment Investment income and other Interest expense Interest Income Other income (expense) net Net income before taxes Income tax expense Total Non Operating income Net Earnings from continuing operations Gain loss from discounued operations Net Earnings including noncontroling interests Net Earning from discounued operations $135,987 $88,265 $43,536 $8,979 $2,007 $4,647 $10,889 $5,149 $3,660 39403 39,403 29,963 7,586 $4,186 $2,325 $2,080 1,854 $155 13 72 $484 $190 $1,925 ($645) $1,281 $1,281 1,816 (609) 1,207 $1,207 21 1,228 ($1,425) $2,371 $2,371 $3,651 ($3,634) $7,285 $7,285 ($19) Net Income Volume Earning per share price per share $2,371 $2.20 $1,078 $1,125 $7,277 $8.30 $877 $35.97 $1,281 $0.45 $2,846 $598.06 1,228 3.89 $316 56.86 Market cap cost of debt Entreprise value book value 542,270 0.75% 542,670 15,501 37,570 0.00% 41,540 5,936 16,440 1.45% 21,230 (1,820) 16,960 0.79% 14,820 4,284 Calculated Multiples EV/EBITDA Multiple P/E Multiple Market to Book Multiple Price/Revenue Multiple 129.64 1.04 34.98 3.99 17.87 0.04 6.33 4.18 10.21 0.21 (9.03) 1.51 7.99 0.18 3.96 0.43 $542,670 $19,334 ($25,069) $536,935 $2.20 $244,061.36 $41,540 $1,816 ($7,683) $35,673 $8.30 $4,297.95 $21,230 $293 ($5,551) $15,972 $0.45 $35,493.93 $14,820 $2,240 ($2,870) $14,190 $3.89 $3,647.81 Your Company Valuation Plus: Your Company Cash Less: Your Company Interest-bearing debt Total Equity value based on EBITDA VA Shares Outstanding (millions) Equity value per share Equity value per share based on P/E multiple Total Equity value based on P/E multiple Plus: Your Company Interest-bearing debt Less: Your Company Cash and equivalents Enterprise value based on P/E multiple Equity value per share based on MTB Ratio Total Equity value based on MTB ratio Plus: Your Company Interest-bearing debt Less: Your Company Cash and equivalents Enterprise value based on MTB ratio Equity value per share based on P/Revenue ratio Total Equity value based on P/Revenue ratio Plus: Your Company Interest-bearing debt Less: Your Company Cash and equivalents Enterprise value based on P/Revenue ratio the analysis as s and using or this ons. Solution Legend Downloaded data Formula/Calculation/Analysis required Best Buy Inc $897 $897 (80) $897 $897 $897 $897 $897 $897

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis for Financial Management

Authors: Robert C. Higgins

12th edition

1259918963, 9781260140729 , 978-1259918964

More Books

Students also viewed these Finance questions

Question

Briefly describe Bacons four Idols. How do the Idols apply today?

Answered: 1 week ago

Question

What are the key aspects of CX?

Answered: 1 week ago