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Suppose Rocky Brands has earnings per share of $ 2 . 4 7 and EBITDA of $ 3 0 . 6 million. The firm also

Suppose Rocky Brands has earnings per share of $2.47 and EBITDA of $30.6 million. The firm also has 5.9 million shares outstanding and debt of $115.3 million (net of cash). You believe Jared's Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Jared's has no debt. If Jared's has a P/E of 13.3 and an enterprise value to EBITDA multiple of 7.8, estimate the value of Rocky Brands stock using both multiples. Which estimate is likely to be more accurate?
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