Identifying Comparables and Valuation using PB and PE Hot Topic, Inc.'s book value of equity is $244 million and its forward earnings estimate per share is $0.38, or $15.7 million in total earnings. The following information is also available for Hot Topic and a peer group of companies (identied by ticker symbol) from the specialty retail sector.

Please show the reasoning and working.

EPS 5-Year Debt-to- Market Cap($ mil.) Curr PB Forward ROE Growth Rate (T4Q) (21.2)% 5.9% 11 .896 8.4% 14.4% 22.5% 27.4% 19.8% 28.5% 33.5% 28.6% 23.5% 4.6% 17.3% (11.6)% 11.8% (7.7)% (0.1)% (7.1)% 11.0% (0.7)% 16.9% Ticker Equity ent PE (FY Historical HOTT PLCE JOSB ZUMZ GYMB MW TWB CBK FINL SSI DBRN $595.1 439.5 492.5 1,126.3 1,217.0 437.4 375.7 289.2 515.0 751.6 (Prior Year) 0.00 0.00 0.00 0.00 0.00 0.11 1.02 0.00 0.00 0.20 0.28 14.7 1.9 3.2 5.7 1.5 2.5 18.5 13.0 11.8 9.2 17.4 16.3 11.9 11.4 0.7 1.5 (a) ldentify the mot reasonable set of three companies from this list to use as comparables for estimating the equity intrinsic value of Hot Topic using the market multiples approach GYMB, TWB, CBK