Suppose that in July 2013, Nike had sales of $25,313 million, EBITDA of $3,254 million, excess cash of $3,337 million, $1,390 million of debt, and 893.6 million shares outstanding.

a. Using the average enterprise value to sales multiple in Table 10.1, estimate Nike's share price.

b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in Table 10.1?

c. Using the average enterprise value to EBITDA multiple in Table 10.1, estimate Nike's share price.

d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in Table 10.1?

 

Name	Market Capitalization ($ million)	Enterprise Value ($ million)	P/E	Price/Book	Enterprise Value/Sales	Enterprise Value/ EBITDA
Nike, Inc.	55,970	54,023	23.29	5.07	2.03	15.71
Adidas AG	23,105	23,317	32.33	3.06	1.20	11.88
Puma AG	4,330	4,085	70.56	1.96	0.96	9.34
Wolverine World Wide	2,910	3,981	37.6	4.13	1.22	9.28
Steven Madden, Ltd.	2,320	2,140	18.4	3.68	1.74	10.70
Deckers Outdoor Corp.	1,990	1,923	16.74	2.67	1.36	8.73
Crocs, Inc.	1,470	1,240	11.46	2.4	1.10	6.74
Skechers U.S.A.	1,340	1,213	67.41	1.54	0.78	18.16
Weyco Group	301	325	16.53	1.71	1.11	9.69
R. G. Barry Corp.	197	174	14.92	2.31	1.19	6.44
Rocky Brands, Inc.	113	132	12.46	0.89	0.58	6.61
		Average	29.84	2.44	1.12	9.76
		Maximum	136%	70%	55%	86%
		Minimum	-62%	-63%	-48%	-34%