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In addition to footwear, Kenneth Cole Productions designs and sells handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the
In addition to footwear, Kenneth Cole Productions designs and sells handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the footwear industry. You also know the following about KCP: it has sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, EPS of $1.65, book value of equity of $12.05 per share, and 21 million shares outstanding. a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 9.68 and a P/E multiple of 18.55 . What share price would you estimate for KCP using each of these multiples, based on the data for KCP? b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 8.92 and a P/E multiple of 17.17 . What share price would you estimate for KCP using ead of these multiples based on the data for KCP? a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 9.68 and a P/E multiple of 18.55. What share price would you estimate for KCP using each of these multiples, based on the data for KCP? Using the Enterprise value/EBITDA ratio for Fossil the price is q (Round to the nearest cent.) Using the P/E ratio for Fossil, the price is $ (Round to the nearest cent.) b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 8.92 and a P/E multiple of 17.17. What share price would you estimate for KCP using each of these multiples based on the data for KCP? Using the Enterprise value/EBITDA ratio for Tommy Hilfiger Corporation, the price is $. (Round to the nearest cent.) Using the P/E ratio for Tommy Hilfiger Corporation, the price is q (Round to the nearest cent.)
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