Question
Suppose that in July 2013, Nike Inc. had sales of $ 25 comma 372 million, EBITDA of $ 3 comma 245 million, excess cash of
Suppose that in July 2013, Nike Inc. had sales of $ 25 comma 372 million, EBITDA of $ 3 comma 245 million, excess cash of $ 3 comma 334 million, $ 1 comma 391 million of debt, and 895.7 million shares outstanding. 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 enterprise value to sales multiple in the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA 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 enterprise value to EBITDA multiples in the table above?
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