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Suppose New Balance Shoes has earnings per share of $2.30 and EBITDA of $30.6 million. The firm also has 4.5 million shares outstanding and debt
Suppose New Balance Shoes has earnings per share of $2.30 and EBITDA of $30.6 million. The firm also has 4.5 million shares outstanding and debt of $120 million (net of cash). You believe Dockers Outdoor Corporation is comparable to New Balance in terms of its underlying business, but Dockers has no debt. If Dockers has P/E of 13.3 and an enterprise value of EBITDA multiple of 7.4, estimate the value of New Balance using the likely most accurate method.
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