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Hi! I have the solution already to the question. I just have no idea how the anwers came out. Can someone please explain? Please see
Hi! I have the solution already to the question. I just have no idea how the anwers came out. Can someone please explain? Please see the attached question with the answer underneath, as well as the table given.
Consider the following data for the airline industry for December 2015 (EV enterprise value, Book- equity book value). Suppose Hawaiian Airlines (HA) has 53 million shares outstanding. Estimate Hawaiian's share value using each of the five valuation multiples shown here , based on the median valuation multiple of the other seven airlines shown. Review Click the icon to see the Worked Solution. Calculate Hawaiian's share values using each of the five valuation multiples below: (Round the median to one decimal place. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EVISales EVIEBITDA EVIEBIT P/E P/Book 6.9 15.1 5.3 Hawaiian Median Implied EV Implied market cap $ Implied share price $ 5.3 6.0 2,582 $ 2,275 $ 42.9 $ 7.5 13.8 3.9 1.2 2,509 $ 2,202 $ 41.5 $ 2,512 1,804 $ 34.0 $ 2,205 $ 1,490 41.6 $ 28.2 Consider the following data for the airline industry for December 2015 (EV enterprise value, Book- equity book value). Suppose Hawaiian Airlines (HA) has 53 million shares outstanding. Estimate Hawaiian's share value using each of the five valuation multiples shown here , based on the median valuation multiple of the other seven airlines shown. Review Click the icon to see the Worked Solution. Calculate Hawaiian's share values using each of the five valuation multiples below: (Round the median to one decimal place. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) EVISales EVIEBITDA EVIEBIT P/E P/Book 6.9 15.1 5.3 Hawaiian Median Implied EV Implied market cap $ Implied share price $ 5.3 6.0 2,582 $ 2,275 $ 42.9 $ 7.5 13.8 3.9 1.2 2,509 $ 2,202 $ 41.5 $ 2,512 1,804 $ 34.0 $ 2,205 $ 1,490 41.6 $ 28.2
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