Question: Valuation by Multiples and Comparables: You are trying to evaluate the fair value of Alaska Airlines' stock. To do so, you have identified 5 comparable

Valuation by Multiples and Comparables:

You are trying to evaluate the fair value of Alaska Airlines' stock. To do so, you have identified 5 comparable publicly traded firms and you obtained the current P/E ratio of each of those: United (9.35), American (4.93), Delta (8.10), Southwest (14.03), and JetBlue (9.60). Given Alaska's current EPS of $7.13, how much do you think its stock should trade for?

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