Which estimate is likely to be more accurate

Assignment Help Financial Management

Reference no: EM131452716

Suppose Rocky Brands has earnings per share of $2.232.23 and EBITDA of $30.830.8 million. The firm also has 5.15.1 million shares outstanding and debt of $140140 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a? P/E of 13.213.2 and an enterprise value to EBITDA multiple of 7.67.6, estimate the value of Rocky Brands stock using both multiples. Which estimate is likely to be more accurate?

The value of Rocky Brands stock using the P/E ratio is ?(Round to one decimal place.)

The value of Rocky Brands stock using the EBITDA ratio is?. (Round to one decimal place.)

Which estimate is likely to be more accurate ? (Select from the drop-down menu.)

Reference no: EM131452716

Questions Cloud

What is the current population survey : What is the Current Population Survey and how is it used? What is the Current Employment Statistics program and how is it used?

Which financial statement reports the accounting equation : In your response post, explain the accounting equation and identify which financial statement reports the accounting equation.

Write balanced chemical equation for beta decay of cesium : write the balanced chemical equation for the beta decay of cesium 130.

What is textual programming language : As an enhancement of the previous programming exercise, consider the problem of programming the robot to write any letter that is entered at the alphanumeric.

Which estimate is likely to be more accurate : The value of Rocky Brands stock using the EBITDA ratio is?. Which estimate is likely to be more accurate?

Determine the equilibrium point : Using a product of your choice along with prices and quantities you select, create a tutorial that will teach somebody how to draw a supply curve.

Discuss how the issue has been addressed historically : Discuss the long-term effects this problem will continue to create without a comprehensive solution. The problem can be of local, national, or global scope.

Record the journal entry if any necessary at december : Garfield Company purchased, as a held- Record the journal entry, if any, necessary at December 31, 2014, to record the fair value option for the bonds payable.

What is the hpy on your investment : The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. What is the HPY on your investment?

User Account

All Pages