Use the multiples of your comparable companies to provide additional estimates of Crocs value using the data
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Question:
Use the multiples of your comparable companies to provide additional estimates of Crocs value using the data in Exhibit 5. Create an analysis using the Multiples Based Valuation table below which:
- Calculates the current value of Crocs using current multiples (Historical Crocs Multiples are also below)
- Calculates values for Crocs using Yeung's cash flow model (Exhibit 6) but with a terminal value based on comparable multiples
Based on this analysis, is the Crocs share price prior to the decline justifiable or does the post decline price appear to be the new normal?
Include appropriate discussion describing your answers.
Export the completed table below into your answer.
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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