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: MSN.com | Data As Of: | 24-May-18 | ||||||||||||||||
FIRM NAME(S) | AAL | ALK | UAL | DAL | LUV | Average | ||||||||||||
|
||||||||||||||||||
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 | |||||||||||
EBITDA |
|
$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 | |||||||||||
COMPUTER-GENERATED CALCULATIONS | ||||||||||||||||||
COMPANY | AAL | ALK | UAL | DAL | LUV | Average | ||||||||||||
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 |
The post Can Someone please answer the questions below? appeared first on Submit Your Homework.
Can Someone please answer the questions below? was first posted on November 30, 2020 at 7:08 pm.
©2019 "Submit Your Assignment". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at wanjohij2009@gmail.com
Ask your questions to our best tutors for quality and timely answers whenever you need. Learn fast and seek help from our solution library that grooms your concepts with over 500 courses. When you place an order with us, be sure that the content will be authentic and free from plagiarism. Moreover, we do make sure that the content is research-based!
From essays to dissertations, we have writing experts for all your assignment needs!