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Stock Prices and Multiples for the Footwear Industry, January 2006 Ticker Name Stock Price ($) Market Capitalization ($ millions) Enterprise Value ($ millions) P/E Price/Book
Stock Prices and Multiples for the Footwear Industry, January 2006 | ||||||||
Ticker | Name | Stock Price ($) | Market Capitalization ($ millions) | Enterprise Value ($ millions) | P/E | Price/Book | Enterprise Value/Sales | Enterprise value/EBITDA |
NKE | Nike | 84.2 | 21,830 | 20,518 | 16.64 | 3.59 | 1.43 | 8.75 |
PMMAY | Puma AG | 312.05 | 5,088 | 4,593 | 14.99 | 5.02 | 2.19 | 9.02 |
RBK | Reebok | 58.72 | 3,514 | 3,451 | 14.91 | 2.41 | 0.9 | 8.58 |
WWW | Wolverine World Wide | 22.1 | 1,257 | 1,253 | 17.42 | 2.71 | 1.2 | 9.53 |
BWS | Brown Shoe | 43.36 | 800 | 1,019 | 22.62 | 1.91 | 0.47 | 9.09 |
SKX | Sketchers | 17.09 | 683 | 614 | 17.63 | 2.02 | 0.62 | 6.88 |
SRR | Stride Rite | 13.7 | 497 | 524 | 20.72 | 1.87 | 0.89 | 9.28 |
DECK | Deckers Outdoor | 30.05 | 373 | 367 | 13.32 | 2.29 | 1.48 | 7.44 |
WEYS | Weco Group | 19.9 | 230 | 226 | 11.97 | 1.75 | 1.06 | 6.66 |
RCKY | Tocky Shoes & Boots | 19.96 | 106 | 232 | 8.66 | 1.12 | 0.92 | 7.55 |
DFZ | R.G. Barry Corp. | 6.83 | 68 | 92 | 9.2 | 8.11 | 0.87 | 10.75 |
BOOT | LaCross Footwear | 10.4 | 62 | 75 | 12.09 | 1.28 | 0.76 | 8.3 |
Suppose that in January 2006, Kenneth Cole Productions had sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, and 21 million shares outstanding. | |||||||
Sales | 518.00 | ||||||
EBITDA | 55.60 | ||||||
Cash | 100.00 | ||||||
Debt | 3.00 | ||||||
Shares outstanding | 21 | ||||||
a. | Using the average enterprise value to EBITDA multiple in Table 1, estimate KCPs share price. | ||||||
Price per share | ____ | ||||||
b. | What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in Table 1? | ||||||
Range based on highest to lowest | |||||||
High | ___ | ||||||
Low | ___ | ||||||
c. | Using the average enterprise value to sales multiple in Table 1, estimate KCPs share price. | ||||||
Price per share | ___ | ||||||
d. | What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in Table 1? | ||||||
Range based on highest to lowest | |||||||
High | ___ | ||||||
Low | ___ | ||||||
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