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Author Question: The industry average P/E for the athletics and apparel industry is 18.8. Estimate the fair value of ... (Read 185 times)

Collmarie

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on: Apr 25, 2021

Question 1

Silicone Systems Inc. shares are trading for $500. Analysts expect Silicone to generate net income of $41.7 billion. Silicone has 900 million shares outstanding. The average P/E ratio of Silicone's competitors is 18. What is the fair price for a share of Silicone Systems?
◦ $463
◦ $500
◦ $751
◦ $834

Question 2

The industry average P/E for the athletics and apparel industry is 18.8. Estimate the fair value of Nike's shares based on the industry average multiple and the data supplied in the table, below.

Price$65
EPS$3
Debt$545M
Equity$9,087M
Cash$3,630M
EBITDA$2,770M
Shares487M

◦ $11.43
◦ $56.40
◦ $65.00
◦ $68.00
◦ $87.50
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Collmarie on Apr 25, 2021

Sweetkitty24130

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Collmarie

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

dantucker

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Reply 3 on: Yesterday
Gracias!

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