L$01,2,3$ E$15-28.$ Identifying Comparables and Valuation Using PB and PE

TAILORED BRANDS

$($TLRD$)$

$MBC$

Tailored Brands Inc.$\text{'}$s book value of equity is $$4\mathrm{.}563$ million and its forward earnings estimate per share is $$1\mathrm{.}10,$ or $$55\mathrm{.}7$ million in total earnings. The following information is also available for TLRD and a peer group of companies $($identified by ticker symbol$)$ from the specialty retail sector.

Module $15$ I Market$-$Based Valuation

$15-28$

Required

a$.$ Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach.

b$.$ Assume that you use as comparables the following set of companies: ZUMZ, TLYS$,$ and M$.$ Estimate TLRD$\text{'}$s equity intrinsic value using the PB ratio from these peer companies.

$c.$ Use the same comparables as in part $b$ and estimate TLRD$\text{'}$s equity intrinsic value using the PE ratio from these peer companies.