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Intro to multiples In the table below, I have provided the EV/Sales multiple for Bon-Ton Stores, Inc., and for 7 other department stores. a. Based
Intro to multiples In the table below, I have provided the EV/Sales multiple for Bon-Ton Stores, Inc., and for 7 other department stores. a. Based on the median and average values of the EV/Sales ratio for these companies, does BonTon look undervalued? b. Note that Bon-Ton has the lowest operating margin of these companies. Can you control for the differences in margin? (Accounting for this, is Bon-Ton undervalued?) Hint: Run a regression
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