Suppose that in April 2019, Nike Inc. had EPS of $2.69 and a book value of equity of $5.71 per share.

 

a. Using the average P/E multiple from the table here, estimate Nike's share price.

	PE	PriceBook	EnterpriseValueSales	EnterpriseValueEBITDA
Average	23.99	7.46	2.17	19.98
Maximum	+81%	+193%	+96%	+73%
Minimum	45%	83%	80%	81%

b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above?

c. Using the average price to book value multiple in the table above, estimate Nike's share price.

d. What range of share prices do you estimate based on the highest and lowest price-to-book value multiples in the table above?

Answer rating: 100% (QA)

a To estimate Nikes share price using the average PE multiple we can use the formula textShare Price ... View the full answer