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The following are financial ratios for three comparable companies: Ratio Oakley, Inc. Luxottica Group Nike, Inc. P/E 24.8x 28x 18.2x EV/Sales 2x 2.7x 1.5x EV/EBITDA

The following are financial ratios for three comparable companies:

Ratio

Oakley, Inc.

Luxottica Group

Nike, Inc.

P/E

24.8x

28x

18.2x

EV/Sales

2x

2.7x

1.5x

EV/EBITDA

11.6x

14.4x

9.3x

EBITDA/Sales

17.0%

18.5%

15.9

Assume that Idekos earnings are 6.5 millions. What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?

Select one:

A. Low Price 2, High Price 28

B. Low Price 17, High Price 28

C. Low Price 118, High Price 182

D. Low Price 140, High Price 155

E. Low Price 18, High Price 28

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