Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shar . Using the average enterprise value to EBITDA multiple from the table here,, estimate Nike's share price. . What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? . Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ 52.78. (Round to the nearest cent.) . What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $106.27. (Round to the nearest cent.) Data table

Financial Reporting, Financial Statement Analysis and Valuation
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ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter12: Valuation: Cash-flow Based Approaches
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Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shares outstanding.
a. Using the average enterprise value to EBITDA multiple from 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 EBITDA multiples in the table above?
a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price.
Nike's share price for this case will be $ 52.78. (Round to the nearest cent.)
b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table?
The highest price will be $106.27. (Round to the nearest cent.)
Data table
TABLE 10.1
Stock Prices and
Multiples for the
Footwear Industry
(excluding Nike), July
2022
Name
Nike, Inc.
Adidas AG
Under Armour
Puma AG
Skechers U.S.A.
Wolverine World Wide
Steven Madden, Ltd.
Rocky Brands, Inc.
Market
Capitalization
($ million)
169,857
Enterprise
Value
($ million)
1,69,487 26.98
33,002
25.63
3,548 15.63
9,888
29.84
6,342
7.41
2,576
41.67
2,455
10.81
520
10.74
Average (excl. NKE)
20.25
31,608
3,713
9,584
5,575
1,615
2,608
247
P/E Price/Book
10.42
4.87
2.05
3.83
1.63
2.70
3.04
1.21
2.76
Enterprise
Value/
EBITDA
23.8
11.13
7.43
15.82
8.51
23.04
7.50
9.08
11.79
Transcribed Image Text:Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shares outstanding. a. Using the average enterprise value to EBITDA multiple from 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 EBITDA multiples in the table above? a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ 52.78. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $106.27. (Round to the nearest cent.) Data table TABLE 10.1 Stock Prices and Multiples for the Footwear Industry (excluding Nike), July 2022 Name Nike, Inc. Adidas AG Under Armour Puma AG Skechers U.S.A. Wolverine World Wide Steven Madden, Ltd. Rocky Brands, Inc. Market Capitalization ($ million) 169,857 Enterprise Value ($ million) 1,69,487 26.98 33,002 25.63 3,548 15.63 9,888 29.84 6,342 7.41 2,576 41.67 2,455 10.81 520 10.74 Average (excl. NKE) 20.25 31,608 3,713 9,584 5,575 1,615 2,608 247 P/E Price/Book 10.42 4.87 2.05 3.83 1.63 2.70 3.04 1.21 2.76 Enterprise Value/ EBITDA 23.8 11.13 7.43 15.82 8.51 23.04 7.50 9.08 11.79
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