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Tapestry has a five-year growth rate of almost 10 times Capri's growth rate and Tapestry has a lower discount rate

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Tapestry has a five-year growth rate of almost 10 times Capri's growth rate and Tapestry has a lower discount rate than Capri, yet they have almost identical EV/EBITDA values. Does this mean that the underlying value method does not work in this case? What might explain the similar EV/EBITDAs?

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The similar EV EBITDA values between Tapestry and Capri despite Tapestry having a significantly higher growth rate and a lower discount rate could be View the full answer


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Statistics For Business Decision Making And Analysis

Statistics For Business Decision Making And Analysis

ISBN: 9780134497167

3rd Edition

Authors: Robert A. Stine, Dean Foster

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Question Details
Chapter # 6
Section: Cases
Problem: 2
Posted Date: September 15, 2023 00:46:53
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