Reference no: EM133111863
Men's Wearhouse's book value of equity is $1,096 million and its forward earnings estimate per share is $2.47, or $117.2 million in total earnings. The following information is also available for MW and a peer group of companies (identified by ticket symbol) from the specialty retail sector.
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Ticker
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Market Cap($ mil.)
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PB Current
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Forward PE (FY1)
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EPS 5-Year Historical Growth Rate
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ROE (T 4Q)
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Debt-to-Equity(Prior Year)
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MW
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--
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--
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--
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6.51%
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35.88%
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0.26
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GCO
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$1,660.0
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1.98
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12.11
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21.35%
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10.95%
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0.11
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FRAN
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891.9
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12.74
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16.59
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0.00%
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75.15%
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0.33
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ZUMZ
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671.4
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2.14
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13.60
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14.59%
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13.42%
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0.02
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GES
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2,400.0
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2.29
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13.82
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(9.82)%
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14.32%
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0.01
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JNY
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1,080.0
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1.06
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14.26
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(15.31)%
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(4.98)%
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1.01
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ASNA
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3,240.0
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2.15
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12.81
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14.37%
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10.77%
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0.12
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EXPR
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1,520.0
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3.78
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10.74
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7.25%
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36.55%
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0.60
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ANF
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2,760.0
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1.7
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15.44
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(15.50)%
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8.73%
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0.12
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SSI
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620.8
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1.53
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13.62
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5.80%
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6.42%
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0.33
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TLYS
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299.7
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2.29
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13.72
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0.00%
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22.11%
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0.03
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(a) froIdentify a set of three companies m this list to use as comparables for estimating the equity intrinsic value of MW using the market multiples approach. AnswerGCO, ASNA, EXPRGES, JNY, GCOGES, ZUMZ, GCOJNY, ANF, ASNAGYMB, JNY, SSI
(b) Assume that you use as comparables the following set of companies: GCO, ASNA, and EXPR. Estimate MW's equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places for your calculation. Round your answer to the nearest million.)
(c) Use the same comparables as in part (b) and estimate MW's equity intrinsic value using the PE ratio from these peer companies. (Round average PE ratio to two decimal places for your calculation. Round your answer to the nearest million.)
$Answer
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