What is the current enterprise value of pellagia

Assignment Help Business Management
Reference no: EM132709781

Pellagia Inc is a nationwide retail chain specializing in women's apparel. The company has 135 million shares outstanding, currently trading at $5.63 per shares. However, only 60% of the shares are actively traded in the market as the founder still holds 40%. The current debt outstanding is $140 million. The company holds $20 million in cash. Its operating metrics are: Revenue = $633 million, EBITDA = $57 million, and earnings attributable to stockholders = $38 million.

a. What is the current enterprise value (EV) of Pellagia?

b. Suppose you are asked to value Pellagia's shares based on its comparable firms? Do you think Pellagia is under or over-valued? Explain the basis of your valuation judgement. State your assumptions if required.

Abercrombie & Fitch ,AnnTaylor Stores Corp. Limited, Brands Inc.

Price to Earnings

13.04, 15.36, (3.40)

EV / Sales

1.58, 1.41, 0.96

Reference no: EM132709781

Questions Cloud

Explain why the chain moved to the average cost : Explain why the chain moved to the average cost flow assumption. How can this assumption help it to "better maintain its net income"
Calculate the position dear : Please calculate the position's DEAR, i.e., the potential loss of over a daily horizon which has a chance of 5 percent to happen.
Punishment in the criminal justice system : What is the objective of punishment in the criminal justice system?
Which the accounting equation for a trustee in bankruptcy : Which the accounting equation for a trustee in bankruptcy liquidation is? Assets minus liabilities equals accountability, Assets equal liabilities minus estate
What is the current enterprise value of pellagia : Pellagia Inc is a nationwide retail chain specializing in women's apparel. The company has 135 million shares outstanding, currently trading at $5.63 per shares
Find the gross profit rate based on sale may be computed a : It refers to the process of winding up the affairs of the corporation by settling its corporate debts and distributing the remainder to the stockholders
What is the present value of the terminal price : What is the present value of the terminal price?
Find the gross rate based on the sale may be computed as : Under the installment sales method, the gross rate based on the sale may be computed as? Gross profit divided by costs of sales
Determine his deductible loss on the car : Johnny had a car accident in 2020 in which his car was completely destroyed. If Johnny's AGI for the year is $60,000, determine his deductible loss on the car

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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