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 $ 75.6 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

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

Microeconomics: An Intuitive Approach With Calculus

Authors: Thomas Nechyba

2nd Edition

1305650468, 978-1305650466

More Books

Students also viewed these Finance questions