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Which estimate is likely to be more? accurate

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Suppose Rocky Brands has earnings per share of ?$2.44 and EBITDA of ?$30.7 million. The firm also has 5.3 million shares outstanding and debt of ?$120 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 13.3 and an enterprise value to EBITDA multiple of 7.2?, estimate the value of Rocky Brands stock using both multiples. Which estimate is likely to be more? accurate?

Reference no: EM131613313

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