Question
Suppose that in July 2013, Nike Inc. had EPS of $2.58 and a book value of equity of $11.69 per share. StartFraction Upper P Over
Suppose that in July 2013, Nike Inc. had EPS of $2.58 and a book value of equity of $11.69 per share. StartFraction Upper P Over Upper E EndFraction StartFraction Price Over Book EndFraction StartFraction Enterprise Value Over Sales EndFraction StartFraction Enterprise Value Over EBITDA EndFraction Average 29.84 2.44 1.12 9.76 Maximum plus136% plus70% plus55% plus86% Minimum minus62% minus63% minus48% minus34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest price-to-book value multiples in the table above?
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 $ nothing. (Round to the nearest cent.) 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. The lowest price. (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. N 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:(Round to the nearest cent.)
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