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Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share. Enterprise Value Enterprise Value EBITDA Price Вook Sales Average 29.84 2.44 1.12 9.76 Maximum + 136% + 55% + 70% - 63% + 86% Minimum -62% - 48% - 34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price-to-book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? Range of prices: The highest price will be $. (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? Range of prices: The highest price will be $ (Round the nearest cent.)

Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share. Enterprise Value Enterprise Value EBITDA Price Вook Sales Average 29.84 2.44 1.12 9.76 Maximum + 136% + 55% + 70% - 63% + 86% Minimum -62% - 48% - 34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price-to-book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? Range of prices: The highest price will be $. (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. Nike's share price for this case will be $. (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? Range of prices: The highest price will be $ (Round the nearest cent.)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share. Price Enterprise Value Enterprise Value E Вook Sales EBITDA Average 29.84 2.44 1.12 9.76 Maximum + 136% + 70% + 55% + 86% Minimum - 62% - 63% - 48% - 34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price-to-book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate Nike's share price. Nike's share price for this case will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? Range of prices: The highest price will be $ (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. Nike's share price for this case will be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? Range of prices: The highest price will be $ (Round to the nearest cent.)
Transcribed Image Text:Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per share. Price Enterprise Value Enterprise Value E Вook Sales EBITDA Average 29.84 2.44 1.12 9.76 Maximum + 136% + 70% + 55% + 86% Minimum - 62% - 63% - 48% - 34% a. Using the average P/E multiple from the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price-to-book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate Nike's share price. Nike's share price for this case will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? Range of prices: The highest price will be $ (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate Nike's share price. Nike's share price for this case will be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? Range of prices: The highest price will be $ (Round to the nearest cent.)
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