The text says: Consider the following data for the airline industry for July 2018(EV=enterprisevalue,...
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The text says:
Consider the following data for the airline industry for July 2018(EV=enterprisevalue, Book=equity book value). Suppose Alaska Air (ALK) has125 million shares outstanding. Estimate Alaska Air's share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown.
Calculate Alaska Air's share values using each of the five valuation multiples below:(Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.)
ther seven airlines shown. of the five valuation multiples below. (Round the median to two decimal places. Round the share price to the nearest cent Round the EV and market can to the near Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) EV/EBIT 6.7x 8.2x 8.Ox Market Capitalization 7,286 17,879 35,580 2,023 5,450 2,909 30,318 21,961 Company Name Alaska Air (ALK) American Airlines (AAL) Delta Air Lines (DAL) Hawaiian (HA) JetBlue Airways (JBLU) SkyWest (SKYW) Southwest Airlines (LUV) United Continental (UAL) Source: Capitallo Enterprise Value (EV) 8,207 37,327 44,164 2,057 5,814 5,040 30,691 31,393 EV/Sales 1.02x 0.87x 1.02x 0.73x 0.80x 1.56x 1.44x 0.80x EV/EBITDA 5.1x 5.7x 5.7x 3.4x 4.1x 7.2x 6.9x 5.7x 4.1x P/E 7.7x 10.5x 10.8x 5.8x 4.9x 6.6x 8.6x 11.4x Forward P/E 12.5x 8.2x 8.8x 7.2x 10.8x 11.8x 12.3x 9.3x 5.9x 12.6x 8.9x 9.2x Print Done ther seven airlines shown. of the five valuation multiples below. (Round the median to two decimal places. Round the share price to the nearest cent Round the EV and market can to the near Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) EV/EBIT 6.7x 8.2x 8.Ox Market Capitalization 7,286 17,879 35,580 2,023 5,450 2,909 30,318 21,961 Company Name Alaska Air (ALK) American Airlines (AAL) Delta Air Lines (DAL) Hawaiian (HA) JetBlue Airways (JBLU) SkyWest (SKYW) Southwest Airlines (LUV) United Continental (UAL) Source: Capitallo Enterprise Value (EV) 8,207 37,327 44,164 2,057 5,814 5,040 30,691 31,393 EV/Sales 1.02x 0.87x 1.02x 0.73x 0.80x 1.56x 1.44x 0.80x EV/EBITDA 5.1x 5.7x 5.7x 3.4x 4.1x 7.2x 6.9x 5.7x 4.1x P/E 7.7x 10.5x 10.8x 5.8x 4.9x 6.6x 8.6x 11.4x Forward P/E 12.5x 8.2x 8.8x 7.2x 10.8x 11.8x 12.3x 9.3x 5.9x 12.6x 8.9x 9.2x Print Done
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