5. (8 points) Lululemon Athletica (LULU) is a Canadian athletic apparel retailer headquartered in Vancouver. It was founded in 1998 as a retailer of yoga wear. It has expanded to sell athletic wear, lifestyle apparel, accessories, and personal care products. Using valuation multiples to estimate the value for LULU. Suppose NIKE, Inc (NKE) has trailing P/E ratio 35.23, Enterprise value/EBITDA 29.54. LULU has trailing EPS $7.49, EBITDA $1599 million, Cash $1260 million, Debt $611 million, and shares outstanding 122.71 million. a. Estimate stock value per share for LULU using P/E ratio and Enterprise value/EBITDA ratio. b. NIKE, Inc has debt $12,813 million and leverage ratio (debt/(debt + equity)) 5.6%, while LULU has leverage ratio 1.8%. For above two multiples you used, which one is more reliable. 5. (8 points) Lululemon Athletica (LULU) is a Canadian athletic apparel retailer headquartered in Vancouver. It was founded in 1998 as a retailer of yoga wear. It has expanded to sell athletic wear, lifestyle apparel, accessories, and personal care products. Using valuation multiples to estimate the value for LULU. Suppose NIKE, Inc (NKE) has trailing P/E ratio 35.23, Enterprise value/EBITDA 29.54. LULU has trailing EPS $7.49, EBITDA $1599 million, Cash $1260 million, Debt $611 million, and shares outstanding 122.71 million. a. Estimate stock value per share for LULU using P/E ratio and Enterprise value/EBITDA ratio. b. NIKE, Inc has debt $12,813 million and leverage ratio (debt/(debt + equity)) 5.6%, while LULU has leverage ratio 1.8%. For above two multiples you used, which one is more reliable