Compute mydecos pe ratio each year from 2009 to 2013

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Reference no: EM131220482

See given Table showing financial statement data and stock price data for Mydeco Corp.

a. Compute Mydeco's PE ratio each year from 2009 to 2013. In which year was it the highest?

b. What was Mydeco's Enterprise Value to EBITDA ratio each year? In which year was it the highest?

c. What might explain the differing time pattern of the two valuation ratios?

Table

Mydeco Corp. 2009-2013	(All data as of fiscal year end; in $ million)
Income Statement	2009	2010	2011	2012	2013
Revenue	404.3	363.8	424.6	510.7	604.1
Cost of Goods Sold	(188.3)	(173.8)	(206.2)	(246.8)	(293.4)
Gross Profit	216.0	190.0	218.4	263.9	310.7
Sales and Marketing	(66.7)	(66.4)	(82.8)	(102.1)	(120.8)
Administration	(60.6)	(59.1)	(59.4)	(66.4)	(78.5)
Depreciation & Amortization	(27.3)	(27.0)	(34.3)	(38.4)	(38.6)
EBIT	61.4	37.5	41.9	57.0	72.8
Interest Income (Expense)	(33.7)	(32.9)	(32.2)	(37.4)	(39.4)
Pretax Income	27.7	4.6	9.7	19.6	33.4
Income Tax	(9.7)	(1.6)	(3.4)	(6.9)	(11.7)
Net Income	18.0	3.0	6.3	12.7	21.7
Shares outstanding (millions)	55.0	55.0	55.0	55.0	55.0
Earnings per share	$0.33	$0.05	$0.11	$0.23	$0.39
Balance Sheet	2009	2010	2011	2012	2013
Assets
Cash	48.8	68.9	86.3	77.5	85
Accounts Receivable	88.6	69.8	69.8	76.9	86.1
Inventory	33.7	30.9	28.4	31.7	35.3
Total Current Assets	171.1	169.6	184.5	186.1	206.4
Net Property, Plant & Equip.	245.3	243.3	309	345.6	347
Goodwill & Intangibles	361.7	361.7	361.7	361.7	361.7
Total Assets	778.1	774.6	855.2	893.4	915.1
Liabilities & Stockholders' Equity
Accounts Payable	18.7	17.9	22	26.8	31.7
Accrued Compensation	6.7	6.4	7	8.1	9.7
Total Current Liabilities	25.4	24.3	29	34.9	41.4
Long-term Debt	500	500	575	600	600
Total Liabilities	525.4	524.3	604	634.9	641.4
Stockholders' Equity	252.7	250.3	251.2	258.5	273.7
Total Liabilities & Stockholders' Equity	778.1	774.6	855.2	893.4	915.1
Statement of Cash Flows	2009	2010	2011	2012	2013
Net Income	18	3	6.3	12.7	21.7
Depreciation & Amortization	27.3	27	34.3	38.4	38.6
Chg. in Accounts Receivable	3.9	18.8	0	-7.1	-9.2
Chg. in Inventory	-2.9	2.8	2.5	-3.3	-3.6
Chg. in Payables & Accrued Comp.	2.2	-1.1	4.7	5.9	6.5
Cash from Operations	48.5	50.5	47.8	46.6	54
Capital Expenditures	(25.0)	(25.0)	(100.0)	(75.0)	(40.0)
Cash from Investing Activities	(25.0)	(25.0)	(100.0)	(75.0)	(40.0)
Dividends Paid	(5.4)	(5.4)	(5.4)	(5.4)	(6.5)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	75.0	25.0	-
Cash from Financing Activities	(5.4)	(5.4)	69.6	19.6	(6.5)
Change in Cash	18.1	20.1	17.4	(8.8)	7.5
Mydeco Stock Price	$7.92	$3.30	$5.25	$8.71	$10.89

Reference no: EM131220482

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