Question: In this problem, you have access to some financial information for Harley-Davidson and some comparables. a. Estimate the stock price implied by each multiple,
In this problem, you have access to some financial information for Harley-Davidson and some comparables. a. Estimate the stock price implied by each multiple, assuming that the proper multiple to apply to Harley-Davidson is the average of the comps' multiples. You should come up with five different stock prices here. b. Compare Harley-Davidson's growth to that of its comparables. What does this imply about the stock price estimates from part a)? c. Why are the stock prices implied by the sales-based multiples so much smaller than the prices based on other multiples?
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