Suppose that in January 2006, Kenneth Cole Productions had sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, and 21 million shares outstanding.
a. Using the average enterprise value to sales multiple in Table 9.1, estimate KCP's share price.
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in Table 9.1?
c. Using the average enterprise value to EBITDA multiple in Table 9.1, estimate KCP's share price.
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in Table 9.1?