1. JTM Airlines is looking to buy Jaguar Airlines. Your boss, the CFO, wants a quick and dirty valuation of Jaguar. You choose to look at past transactions in the airline industry to get some numbers and put them in an Excel spreadsheet. For Jaguar, you find out the firm's key financial values and put them in the spreadsheet. To remind yourself that they are inputs, you should color them red.

   Using EPS, Book Value (BV), Sales, EBITDA, Premium and Synergy over stock price,what should be Jaguar's prices per share?
   

 

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D G H Equity Valuations using Multiples and Transactions EBITDA EPS BV Sales Premium Synergy E Historical Multiples: - Average 17.19 3.63 2.41 10.57 53.3% 24.8% Jaguar shares o/s (M) - Median 18.13 3.69 2.37 9.91 53.0% 24.5% 88.33 EPS Last 40 Est. 2021 Est. 2022 Jaguar EPS 4.84 4.91 5.69 Maximum 87.75 89.02 103.16 10 Minimum 83.20 17.82 13.71 Book Value 12 Jaguar Book Value 32.46 13 Maximum 588.50 14 Minimum 557.99 15 Sales Jaguar Sales (Last 4Q) Average Sales Multiple Fim Value 16. 3,722 17 18 19 Debt Value 2,094 20 Equity Value Maximum Minimum 0.03 EBITDA Jaguar EBITDA (Last 4Q) Average EBITDA Multiple E4 1,017 26 Firm Value Debt Value 2,094 Equity Value 8,656 Maximum 97.99 Minimum 0.12 Premium 12 Pre-Announcement Stock Price 71.00 Maximum 108.63 4 Minimum 108.84 Synergy 6 Pre-Announcement Stock Price 7 Maximum is Minimum 71.00 88.40 88.61 39 D G H Equity Valuations using Multiples and Transactions EBITDA EPS BV Sales Premium Synergy E Historical Multiples: - Average 17.19 3.63 2.41 10.57 53.3% 24.8% Jaguar shares o/s (M) - Median 18.13 3.69 2.37 9.91 53.0% 24.5% 88.33 EPS Last 40 Est. 2021 Est. 2022 Jaguar EPS 4.84 4.91 5.69 Maximum 87.75 89.02 103.16 10 Minimum 83.20 17.82 13.71 Book Value 12 Jaguar Book Value 32.46 13 Maximum 588.50 14 Minimum 557.99 15 Sales Jaguar Sales (Last 4Q) Average Sales Multiple Fim Value 16. 3,722 17 18 19 Debt Value 2,094 20 Equity Value Maximum Minimum 0.03 EBITDA Jaguar EBITDA (Last 4Q) Average EBITDA Multiple E4 1,017 26 Firm Value Debt Value 2,094 Equity Value 8,656 Maximum 97.99 Minimum 0.12 Premium 12 Pre-Announcement Stock Price 71.00 Maximum 108.63 4 Minimum 108.84 Synergy 6 Pre-Announcement Stock Price 7 Maximum is Minimum 71.00 88.40 88.61 39

Answer rating: 100% (QA)

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