Suppose that in April 2019, Nike had sales of $36,397 million, EBITDA of $5,219 million, excess cash of $5,245 million, $3,810 million of debt, and 1573.8 million shares outstanding.
a. Using the average enterprise value to sales multiple in Table 10.1, estimate Nike’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 10.1?
c. Using the average enterprise value to EBITDA multiple in Table 10.1, estimate Nike’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 10.1?

Table 10.1

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Name Nike, Inc. Adidas AG Under Armour Puma AG Skechers U.S.A. Wolverine World Wide Steven Madden, Ltd. Rocky Brands, Inc. Market Capitalization ($ million) 134,210 50,885 9,219 9,110 5,452 3,283 2,943 189 Enterprise Value ($ million) 132,775 49,475 8,862 9,538 5,185 3,280 2,068 179 Average Maximum Minimum P/E 33.22 28.69 NM 43.42 18.04 17.83 22.84 13.13 23.99 81% -45% Price/Book 13.68 6.95 4.71 9.24 6.76 21.89 1.45 1.24 7.46 193% -83% Enterprise Value/Sales 3.65 1.97 1.66 4.26 3.13 3.01 0.44 0.71 2.17 96% -80% Enterprise Value/ EBITDA 25.44 14.81 18.82 33.70 26.45 34.53 3.78 7.78 19.98 73% -81%