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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 38937             0.9x                 4.5x           5.5x        6.2x       7.5x
United Continental (UAL) 22000 28522             0.7x                 4.2x           5.6x        3.4x       2.6x
Southwest Airlines (LUV) 28499 28125             1.5x                 6.0x           7.4x      16.1x       4.1x
Alaska Air (ALK) 10396 9870             1.8x                 6.3x           7.9x      13.4x       4.4x
JetBlue Airways (JBLU) 7338 8189             1.3x                 6.1x           7.9x      13.8x       2.4x
SkyWest (SKYW) 1039 2590             0.8x                 5.2x        11.1x      21.2x       0.7x
Hawaiian (HA) 1974 2281             1.0x                 5.3x           6.9x      15.1x       5.3x

Calculate​ Hawaiian's share values using each of the five valuation multiples​ below: (Round the median to one decimal place. Round the share price to the nearest cent. Round the EV and market cap to the nearest​ integer.)

EV/Sales
Hawaiian 1
Median
Implied EV $
Implied market cap $
Implied share price $
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Answer #1

Market Capitalization Enterprise Value (EV) EV/Sales EVVEBITDA EVIEBIT PIE PIBook 40857 27249 Delta Air Lines (DA) American Airlines (AAL) United Continental (UAL) Southwest Airlines (U) Alaska Air (ALK) JetBlue Airways (JBLLU) SkyWest Median of 7 comps 45846 7.6 8937 8125 8189 0.9 2.6 28499 7.9 7.9 13.4 13.8 21.2 MEDIAN(H3:H9 2.4 0.8 MEDIAN(E3:E9 MEDIAN(F3:F9 MEDIAN(G3:G9 MEDIAN(13:19 -SD$21E21 -SD$21/F21 -SD$21/G21 -SC$21/H21 -SC$21121 -D21-C21 52.9 EBITDA Earnings Book Value Net Debt No. of shares 9 Market Capitalization Enterprise Value (EV) EV/Sales EVIEBITDA EVIEBIT PIE P/Book 5.3 -F10 5.3 Hawaiiean (HA) Median of 7 c 974 2281 6.9 E10 G10 H10 EVISales PIE H26+$C$17 EVIEBITDA EVIEBIT P/Book 126+SC$17 122 C16 126/SC$18 Implied EV -E22 C12 E25-$C$17 E28/SC$18 -F22°C 13 F25-$C$17 -G22*C11 iarket ca share price G25-$CS17 -G28/SC$18 -H22 C15 2 F26 $CS18 H26/$C$18

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