Suppose that in April 2019, Nike Inc. had sales of $36,403 million, EBITDA of $5,214 million, excess cash of $5,245 million, $3,818 million of debt, and 1,583.3 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here,, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to sales multiple will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? The range of prices using the average enterprise value to sales multiple is as follows: The highest price will be $ (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to EBITDA multiple l be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? The range of prices using the average enterprise value to EBITDA multiple is as follows: The highest price will be $. (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.)
Suppose that in April 2019, Nike Inc. had sales of $36,403 million, EBITDA of $5,214 million, excess cash of $5,245 million, $3,818 million of debt, and 1,583.3 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here,, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to sales multiple will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? The range of prices using the average enterprise value to sales multiple is as follows: The highest price will be $ (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to EBITDA multiple l be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? The range of prices using the average enterprise value to EBITDA multiple is as follows: The highest price will be $. (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Suppose that in April 2019, Nike Inc. had sales of $36,403 million, EBITDA of $5,214 million, excess cash of $5,245 million, $3,818 million of debt, and 1,583.3 million shares outstanding.
a. Using the average enterprise value to sales multiple in the table here,, estimate Nike's share price.
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above?
c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price.
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price.
Nike's share price using the average enterprise value to sales multiple will be $
(Round to the nearest cent.)
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above?
The range of prices using the average enterprise value to sales multiple is as follows:
The highest price will be $
(Round to the nearest cent.)
The lowest price will be $
(Round to the nearest cent.)
c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price.
Nike's share price using the average enterprise value to EBITDA multiple will be $
(Round to the nearest cent.)
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
The range of prices using the average enterprise value to EBITDA multiple is as follows:
The highest price will be $
(Round to the nearest cent.)
The lowest price will be $
(Round to the nearest cent.)
Transcribed Image Text:Suppose that in
a. Using the average enterprise value to sales multiple in the table here,, estimate Nike's share price.
5. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above?
c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price.
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
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Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Average
Maximum
Minimum
The lowest price will be $
PE
23.99
+81%
-45%
(Round to the nearest cent.)
Y
Print
Price
Book
7.46
+ 193%
- 83%
Done
Enterprise Value
Sales
2.17
+ 96%
- 80%
--------------ZA
Enterprise Value
EBITDA
19.98
+ 73%
- 81%
- X
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