In addition to footwear, Kenneth Cole Productions designs and sources handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the footwear industry. You also know the following about KCP: it has sales of million, EBITDA of million, excess cash of million,
million of debt, EPS of , book value of equity of per share, and
million shares outstanding.
a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of
and a P/E multiple of . What share price would you estimate for KCP using each of these multiples, based on the data for KCP?
b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of and a P/E multiple of . What share price would you estimate for KCP using each of these multiples based on the data for KCP?
In addition to footwear, Kenneth Cole Productions designs and sources handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the footwear industry. You also know the following about KCP: it has sales of $5
Suppose that in January 2006 Kenneth Cole Productions had sales of $522 million, EBITDA of $59.6 million, excess cash of $99 million, $4.3 million of debt, and 18 million shares outstanding. Use the multipless approach to estimate KCP's value based on the following data from comparable firms: a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise...
Please show work via excel Table 1 Stock Prices and Multiples for the Footwear Industry, January 2006 Ticker Name Stock Price ($) 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...
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...