Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You would like to compare Ideko's profitability to its competitors' profitability using the EBITDA/sales multiple. Given Ideko's current sales of $ 75.0million, use the information

image text in transcribed

You would like to compare Ideko's profitability to its competitors' profitability using the EBITDA/sales multiple. Given Ideko's current sales of $ 75.0million, use the information in the tableto compute a range of EBITDA for Ideko assuming it is run as profitably as its competitors.

Problem and tables are attached.

Please help!

image text in transcribed You would like to compare Ideko's profitability to its competitors' profitability using the EBITDA/sales multiple. Given Ideko to compute a range of EBITDA for Ideko assuming it is run as profitably as its competitors. Ratio P/E EV/Sales EV/EBITDA EBITDA/Sales Oakley, Inc. 24.8 2.0 11.6 17.0% Luxottica Group 28.0 2.7 14.4 18.5% Nike, Inc. 18.2 1.5 9.3 15.9% Sporting Goods Industry 20.3 1.4 11.4 12.1% A. This implies an EBITDA range of $ 9.075 million to $ 13.875 million B. This implies an EBITDA range of $ 9.075 million to $ 12.750 million C. This implies an EBITDA range of $ 11.925 million to $ 13.875 million D. This implies an EBITDA range of $ 11.925 million to $ 12.750 million A. A. A. A. A. TDA/sales multiple. Given Ideko's current sales of $ 75.0 million, use the information in the table below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Healthcare Finance: An Introduction To Accounting And Financial Management

Authors: Louis Gapenski

6th Edition

1567937411, 978-1567937411

More Books

Students also viewed these Finance questions