(Solution) - Suppose that in May 2010 Nike had sales of 19 176 -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Suppose that in May 2010, Nike had sales of $19,176 million, EBITDA of $2,809 million, excess cash of $3,500 million, $437 million of debt, and 485.7 million shares outstanding.
a. Using the average enterprise value to sales multiple in Table 10.1, estimate Nike?s share price.
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in Table 10.1?
c. Using the average enterprise value to EBITDA multiple in Table 10.1, estimate Nike?s share price.
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in Table 10.1?