Consider the following data for the airline industry for July 2018 (EV=enterprise value, Book=equity book value). Suppose
Fantastic news! We've Found the answer you've been seeking!
Question:
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 | 0.87 | 5.7 | 8.2 | 10.5 | 8.2 | |||
Delta Air Lines (DAL) | 35,580 | 44,164 | 1.02 | 5.7 | 8 | 10.8 | 8.8 | |||
Hawaiian (HA) | 2,023 | 2,057 | 0.73 | 3.4 | 4.1 | 5.8 | 7.2 | |||
JetBlue Airways (JBLU) | 5,450 | 5,814 | 0.8 | 4.1 | 5.9 | 4.9 | 10.8 | |||
SkyWest (SKYW) | 2,909 | 5,040 | 1.56 | 7.2 | 12.6 | 6.6 | 11.8 | |||
Southwest Airlines (LUV) | 30,318 | 30,691 | 1.44 | 6.9 | 8.9 | 8.6 | 12.3 | |||
United Continental (UAL) | 21,961 | 31,393 | 0.8 | 5.7 | 9.2 | 11.4 | 9.3 | |||
Source: CapitalIQ |
Related Book For
Posted Date: