Question
You would like to compare Ideko's profitability to its competitors' profitability using the EBITDA/sales multiple. Given Ideko's current sales of $ 75.6 million, use the
You would like to compare Ideko's profitability to its competitors' profitability using the EBITDA/sales multiple. Given Ideko's current sales of $ 75.6 million, use the information in the table,
Ratio Oakley, Inc. Luxottica GroupNike, Inc. SportingGoods Industry
P/E 24.6 27.9 18.4 20.2
EV/Sales 1.9 2.9 1.5 1.4
EV/EBITDA 11.7 14.3 9.2 11.4
EBITDA/Sales 16.8% 18.6% 15.9% 12.1%
to compute a range of EBITDA for Ideko assuming it is run as profitably as its competitors.
A. This implies an EBITDA range of $ 12.020 million to $ 14.062 million.
B.This implies an EBITDA range of $ 12.020 million to $ 12.701 million.
C.This implies an EBITDA range of $ 9.148 million to $ 12.701 million
D.This implies an EBITDA range of $ 9.148 million to $ 14.062 million
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