Johnson Outdoors Inc. sells recreational products. Sales are $425 million and earnings are $19 million. Johnson's share price
is $28/share and there are 10 million shares outstanding. Johnson has $8 million of debt outstanding and no excess cash.
You are trying to estimate the share value of a private firm in the same industry.
The private firm has $120 million of sales and $7 million of earnings. The private firm has 6 million shares outstanding,
no debt and no excess cash.
(i) Estimate the private firms share value using Johnson's sales multiple.
(ii) Estimate the private firms share value using Johnson's earnings multiple.