Develop an estimate of the market value of equity of rcsh

Assignment Help Marketing Management
Reference no: EM13875037

Business Valuation Ruth's Chris Steak House (RCSH) is a chain of restaurants that began 43 years ago as a single location in New Orleans and has grown to more than 90 restaurants. RCSH went public, with an initial public offering of stock (IPO) in August 2005. A question at the time of the IPO was how to value the company, given available information. Ruth's had sales of $192.2 million in 2004, earnings of $23.3 million, and net debt less cash of $117 million. One analyst chose to use the enterprise value of comparable companies, noting that Smith and Wollensky Restaurant Group (another chain of steak restaurants) had a ratio of enterprise value to sales of 70 percent. Another restaurant chain, Morton's, had recently gone private and, in the last year as a public company, had an enterprise ratio to sales of 80 percent.

Required: Develop an estimate of the market value of equity of RCSH in August 2005 and explain your reasoning.

Reference no: EM13875037

Questions Cloud

What motivated the individual to achieve? : What motivated the individual to achieve?
How much does a beach renourishment cost : How much does a beach renourishment cost? In your opinion, is beach renourishment effective in decreasing beach erosion and worth the investment? Explain your reasoning.
What valuation would you choose for the technology company : The value of having multiple analyst reports is that one can develop a range of possible valuations, and select a final valuation that seems appropriate. What valuation would you choose for this technology company?
How many states have revised their rape laws : How many states have revised their rape laws to make them gender neutral
Develop an estimate of the market value of equity of rcsh : Business Valuation Ruth's Chris Steak House (RCSH) is a chain of restaurants. Develop an estimate of the market value of equity of RCSH in August 2005 and explain your reasoning.
Summary for law case : Please summary the case-FACTS: Dalarna Management Corporation owned a building constructed on a pier on a lake. There were repeated difficulties with rainwater leaking into the building, and water damage was visible in the interior of the building
Describe the logic of the nonegocentric mind : Describe the logic of the nonegocentric mind
What are the weaknesses of incentive plans based on eps : What are the weaknesses of incentive plans based on EPS? What does the use of these plans by the two firms say about each firm's competitive strategy?
Describe egocentric thinking : Describe egocentric thinking

Reviews

Write a Review

Marketing Management Questions & Answers

  Explain the major airline market segments

Explain the major airline market segments by applying the marketing concepts of segmentation, targeting, and positioning and briefly describe the branding and positioning strategies of United and Southwest Airlines. Do they build brand loyalty? If s..

  Integrated marketing campaign of mccafe

Integrated marketing campaign for McDonald's McCafe. McCafe has been launched in Canada. This is a case study which involves the use of digital marketing and social media marketing apart from regular marketing such as TV and radio. All these more are..

  Introductionyour will be assigned a brand of consumer

introductionyour will be assigned a brand of consumer products. research the brand the organization that markets the

  About internal and external environment

Internal and External Environment

  Write 4-5 paragraphs with the references anddiscuss and

write 4-5 paragraphs with the references anddiscuss and explain what is included in a detailed project plan.present two

  Companies being socially responsible

In regards to companies being socially responsible, what isn't discussed at much length is what role we have as a consumer in purchasing from companies that do not pay their employees market wages, or have bad working conditions, or give sparse healt..

  Explain what is click and mortar marketing

Explain What is click and mortar marketing and how does it compare to brick and mortar or pure play marketing techniques

  How has technology affected customer relationship management

How has technology affected Customer Relationship Management

  Explain strategic marketing

Explain Strategic Marketing and you have just been hired as the new Marketing Manager at ITO Company

  What opportunities in the marketing environment did gannett

1.what opportunities in the marketing environment did gannett seize in launching usa today? how did the company learn

  Explain a large number of forces shape the marketing

Explain A large number of forces shape the marketing environment and The technological environment is one of the most important today

  Write about if other companies also use the propylene gycol

For each communication objective, we need to provide two communication strategies. Write about if other companies also use the propylene gycol

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd