Question
Suppose that in July 2013, Nike Inc. had EPS of $2.61 and a book value of equity of $13.25 per share. P/E Price / Book
Suppose that in July 2013, Nike Inc. had EPS of $2.61 and a book value of equity of $13.25 per share.
P/E | Price / Book | Enterprise Value / Sales | Enterprise Value / EBITDA | |
Average | 29.84 | 2.44 | 1.12 | 9.76 |
Maximum | plus+136% | plus+70% | plus+55% | plus+86% |
Minimum | 62% | 63% | 48% | 34% |
a. Using the average P/E multiple from the table above, estimate Nike's share price.
Nike's share price for this case will be______?
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above?
Range of prices:
The highest price will be_____?(Round to the nearest cent.)
The lowest price will be_____?(Round to the nearest cent.)
c. Using the average price to book value multiple in the table above, estimate Nike's share price.
Nike's share price for this case will be______?
d. What range of share prices do you estimate based on the highest and lowest price-to-book value multiples in the table above?
Range of prices:
The highest price will be_____?(Round to the nearest cent.)
The lowest price will be_____?(Round to the nearest cent.)
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