Question
Use the Price Ratio data from Yahoo! Finance.com for the current P/S, P/E (trailing), and Enterprise Value/EBITDA for Costco (COST) from the key Statistics tab.
Use the Price Ratio data from Yahoo! Finance.com for the current P/S, P/E (trailing), and Enterprise Value/EBITDA for Costco (COST) from the key Statistics tab. Also on the key Statistics tab, Find the current number of shares outstanding, Total Cash, Total Debt, and the current EBITDA.
a. On the Analysis tab, find the Current Year (2023) average EPS forecast. What is the expected Value for Costco if the P/E ratio stays the same.
b. On the Analysis tab, find the Current Year (2023) average revenue (sales) forecast. Divide the forecasted sales by the number of shares outstanding. What is the expected Value for Costco if the P/S ratio stays the same.
c. On the Analysis tab, find the growth forecast for the next 5 years. Multiply the current EBITDA by (1 + 5yr Growth rate). What is the expected Enterprise Value for Costco if the Enterprise Value/EBITDA ratio stays the same.
d. Using the definition of the Enterprise Value, compute the expected value of Costcos equity. Divide the expected value of Costcos equity by number of shares outstanding.
e. What is the average expected value based on the 3 price ratio expected value estimates?
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