Can Someone please answer the questions below?

Use Southwest Airlines Enterprise Value PEG Model below . Complete a case study of relative valuation. Analyze the value of your subject company compared to average industry [e.g., XLF] and cohort (2-4 comparable companies) values.

Present Relative Valuation (Valuation by Comparables) –

1. Use appropriate relative valuation models and conduct a Valuation by Comparables of the company that you selected to study. Select a meaningful Return Ratio and Price Ratio or multiple. Consider using the most recent 3-5 annual or quarterly periods with mean/median and standard deviation. [Keep in mind you have a worksheet from Analysis Paper 1 that can be used/revised.]

How do you interpret and explain the results? Why did you choose the ratios used for the comparison?

Present Enterprise Value and EV / EBITDA Ratio –

2. Post the results of the Enterprise Value of Southwest Airlines, along with its EV/EBITDA ratio, P/E Ratio, and PEG Ratio, along with those of a few competitors. Use normalized values – mean/median and standard deviation for industry [e.g., XLF] and cohort.

What do the results mean?

Enterprise Value/EBITDA and PEG Ratio
Source of Data: Data As Of: 24-May-18
COMMON STOCK OUTSTANDING 468.2 123.3 227.3 698.9 579.8 419.5 Number of Shares (Diluted Weighted Average)
RECENT SHARE PRICE $43.56 $59.87 $70.47 $54.40 $51.21 $55.90 Current Stock Price
TOTAL DEBT $24,740.0 $2,580.0 $14,960.0 $9,710.0 $3,227.0 $11,043.4 L/T, S/T & Current Portion of L/T
TOTAL CASH AND LIQUID INVESTMENTS $5,066.0 $1,620.0 $6,352.0 $2,491.0 $1,495.0 $3,404.8 Cash & S/T Investments
$4,053.0 $1,521.0 $5,258.0 $9,934.0 $4,546.0 $5,062.4 Normalized EBITDA
NET INCOME $1,919.0 $1,030.0 $2,180.0 $3,560.0 $3,488.0 $2,435.4 Net Income
L/T GROWTH RATE 11.51% 12.90% 19.60% 12.90% 21.10% 15.60% Earnings Growth Rate – Next 5 years
MARKET CAPITALIZATION $20,392.6 $7,379.6 $16,015.4 $38,019.1 $29,691.7 $22,299.7
ENTERPRISE VALUE $40,066.6 $8,339.6 $24,623.4 $45,238.1 $31,423.7 $29,938.3
EV/EBITDA RATIO 9.89 5.48 4.68 4.55 6.91 6.30
P/E RATIO 10.63 7.16 7.35 10.68 8.51 8.87
PEG RATIO 0.92 0.56 0.37 0.83 0.40 0.62

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Can Someone please answer the questions below? was first posted on November 30, 2020 at 7:08 pm.
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