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Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here, E, 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?

Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here, E, 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?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 11P: Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as...
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Data table (Click on the following icon in order to copy its contents into a spreadsheet.) P Price Enterprise Value Enterprise Value E Вook Sales EBITDA Average 23.99 7.46 2.17 19.98 Maximum + 81% + 193% + 96% + 73% Minimum - 45% - 83% -80% - 81% Print Done
Transcribed Image Text:Data table (Click on the following icon in order to copy its contents into a spreadsheet.) P Price Enterprise Value Enterprise Value E Вook Sales EBITDA Average 23.99 7.46 2.17 19.98 Maximum + 81% + 193% + 96% + 73% Minimum - 45% - 83% -80% - 81% Print Done
Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here, E, 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?
Transcribed Image Text:Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess cash of $5,253 million, $3,814 million of debt, and 1,578.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here, E, 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?
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