Question

You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected t

A) What is the enterprise value of Walmart? (express answer as xx.xx billion)

B) What is the enterprise value/EBITDA multiple for Walmart?

C) Based on the EBITDA reported for Target, what is an estimate for Target’s enterprise value using Walmart’s enterprise value/EBITDA multiple?

D) Using Target's financial data and their implied value using multiples, what is an estimate for their share price?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A

Enterprise value = Equity value+ MV of debt
- Cash & Cash Equivalents
Enterprise value = 258.6+58.3-9.67
Enterprise value = 307.23

B

EV/EBIDTA = 307.23/40.87

=

7.52

C

Target EV = EV/EBIDTA*EBIDTA = 7.52*7.97

=

59.93

D

Enterprise value = Equity value+ MV of debt
- Cash & Cash Equivalents
59.59 = Equity value+14.53-1.91
Equity value = 46.97
share price = equity value/number of shares
share price = 46.97/0.65
share price = 72.26
Add a comment
Know the answer?
Add Answer to:
A) What is the enterprise value of Walmart? (express answer as xx.xx billion) B) What is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You are trying to find an implied value for Target Corporation using financial information from Walmart....

    You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following: Walmart Statistics: Value: $263,07 billion Market capitalization of common stock $58.78 billion Market value of debt Cash $9.90 billion $36.84 billion EBITDA Target Statistics: Value: Market value of debt $14.69 billion $1.82 billion Cash $8.17 billion EBITDA Shares Outstanding 0.66 billion What is the enterprise value of Walmart? (express answer as xx.xx billion) Submit Answer format: Currency: Round to:...

  • You are trying to find an implied value for Target Corporation using financial information from Walmart....

    You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following Walmart Statistics: Value: Market capitalization of common stock S258.80 billion Market value of debt $59.29 billion Cash $9.00 billion EBITDA $39.87 billion Target Statistics: Value: Market value of debt $14.73 billion Cash $1.91 billion EBITDA 58.14 billion Shares Outstanding 0.65 billion Using Target's financial data and their implied value using multiples, what is an estimate for their share price?...

  • You are trying to find an implied value for Target Corporation using financial information from Walmart....

    You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following: Walmart Statistics: Value: $264.57 billion $57.92 billion $8.96 billion $42.44 billion Market capitalization of common stock Market value of debt Cash EBITDA Target Statistics: Value: Market value of debt $14.48 billion Cash $1.84 billion EBITDA $8.23 billion Shares Outstanding 0.68 billion Using Target's financial data and their implied value using multiples, what is an estimate for their share price?

  • Problem Consider the following data as of July 2015 for Walmart and Target Corporation (in $...

    Problem Consider the following data as of July 2015 for Walmart and Target Corporation (in $ billion) Sales EBIT Depreciation and Amortization Net Income Market Capitalization Cash Debt Walmart (WMT) 485.7 26.6 9.2 16.2 235.6 9.1 48.8 Target (TGT) 73.1 4.5 2.1 2.5 52.9 2.2 12.8 Compare Walmart's and Target's EBIT margins, net profit margins, P/E ratios, and the ratio of enterprise value to sales, EBIT, and EBITDA.

  • Table 1 Stock Prices and Multiples for the Footwear Industry,January 2006 Ticker Name Stock Price...

    Table 1 Stock Prices and Multiples for the Footwear Industry,January 2006 Ticker Name Stock Price ($) Market Cap ($ Enterprise Value P/E Price/BookEnterprise Enterprise millions) (millions) Value/Sales 1.43 2.19 |value/EBITDA 84.2 21,830 5,088 58.723,514 1,257 800 683 497 373 230 106 20,518 16.643.59 ,593 14.995.02 3,451 14.912.41 2.71 1.91 2.02 1.87 367 13.322.29 22611.97 1.75 NKE PMMAY Puma AG RBKReebok WWWWolverine World Wide BWS 8.75 9.02 8.58 9.53 9.09 6.88 9.28 7.44 6.66 7.55 10.75 Nike 312.05 22.1 43.36 17.09...

  • Consider the following data for the airline industry for December 2015 ​(EV=enterprise ​value, Book=equity book​ value)...

    Consider the following data for the airline industry for December 2015 ​(EV=enterprise ​value, Book=equity book​ value) Suppose Hawaiian Airlines (HA) has 52.9 million shares outstanding. Estimate Hawaiian’s share value using each of the five valuation multiples in Table, based on the median valuation multiple of the other seven airlines shown. Market Capitalization Enterprise Value (EV) EV/Sales EV/EBITDA EV/EBIT P/E P/Book Delta Air Lines (DAL) 40857 45846             1.1x                 6.0x           7.6x      15.0x       4.0x American Airlines (AAL) 27249...

  • Please show work via excel Table 1 Stock Prices and Multiples for the Footwear Industry, January...

    Please show work via excel Table 1 Stock Prices and Multiples for the Footwear Industry, January 2006 Ticker Name Stock Price ($) Market Cap ($ Enterprise Value P/E Price/Book Enterprise Enterprise millions) ($ millions) Value/Sales value/EBITDA NKE Nike 84.2 21,830 20,518 16.64 3.59 1.43 8.75 PMMAY Puma AG 312.05 5,088 4,593 14.99 5.02 2.19 9.02 RBK Reebok 58.72 3,514 3,451 14.91 2.41 0.9 8.58 WWW Wolverine World Wide 22.1 1,257 1,253 17.42 2.71 1.2 9.53 BWS Brown Shoe 43.36 800...

  • Please help solve blue boxes. All information is given. Help solve using excel. Problem 10-18 Suppose...

    Please help solve blue boxes. All information is given. Help solve using excel. Problem 10-18 Suppose that in July 2013, Nike had sales of $25,313 million, EBITDA of $3,254 million, excess cash of $3,337 million, $1,390 million of debt, and 893.6 million shares outstanding. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an...

  • Consider the following data for the airline industry for July 2018 ​(EV=enterprise ​value, Book=equity book​ value)....

    Consider the following data for the airline industry for July 2018 ​(EV=enterprise ​value, Book=equity book​ value). Suppose Alaska Air​ (ALK) has 123123 million shares outstanding. Estimate Alaska​ Air's share value using each of the five valuation​ multiples, based on the median valuation multiple of the other seven airlines shown. Market Capitalization Enterprise Value (EV) EV/Sales EV/EBITDA EV/EBIT P/E Forward P/E Total Shares Alaska Air (ALK) 7,286 8,207 1.02 5.1 6.7 7.7 12.5 123 Peer Data American Airlines (AAL) 17,879 37,327...

  • if u answer is 150 million, it’s incorrect answer Example 5.12: A company had total revenues...

    if u answer is 150 million, it’s incorrect answer Example 5.12: A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently has $300 million in total debt and $100 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $1 billion, what is its EV/EBITDA ratio? Solution: EBITDA = EBIT + Depreciation & Amortization...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT