Homework Answers
| Enterprise value = Equity value+ MV of debt |
| - Cash & Cash Equivalents |
| Enterprise value = 263.07+58.78-9.9 |
| Enterprise value = 311.95 |
Target EV = walmart EV/walamrt EBIDTA*target EBIDTA = 311.95/36.84*8.17
=69.18
| Enterprise value = Equity value+ MV of debt |
| - Cash & Cash Equivalents |
| 69.18 = Equity value+14.69-1.82 |
| Equity value = 56.31 |
| share price = equity value/number of shares |
| share price = 56.31/0.66 |
| share price = 85.32 |
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You are trying to find an implied value for Target Corporation using financial information from Walmart....
You are trying to find an implied value for Target Corporation using financial information from Walmart....
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following Walmart Statistics: Value: Market capitalization of common stock S258.80 billion Market value of debt $59.29 billion Cash $9.00 billion EBITDA $39.87 billion Target Statistics: Value: Market value of debt $14.73 billion Cash $1.91 billion EBITDA 58.14 billion Shares Outstanding 0.65 billion Using Target's financial data and their implied value using multiples, what is an estimate for their share price?...
You are trying to find an implied value for Target Corporation using financial information from Walmart....
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following: Walmart Statistics: Value: $264.57 billion $57.92 billion $8.96 billion $42.44 billion Market capitalization of common stock Market value of debt Cash EBITDA Target Statistics: Value: Market value of debt $14.48 billion Cash $1.84 billion EBITDA $8.23 billion Shares Outstanding 0.68 billion Using Target's financial data and their implied value using multiples, what is an estimate for their share price?
A) What is the enterprise value of Walmart? (express answer as xx.xx billion) B) What is...
A) What is the enterprise value of Walmart? (express answer as
xx.xx billion)
B) What is the enterprise value/EBITDA multiple for Walmart?
C) Based on the EBITDA reported for Target, what is an estimate
for Target’s enterprise value using Walmart’s enterprise
value/EBITDA multiple?
D) Using Target's financial data and their implied value using
multiples, what is an estimate for their share price?
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have...
Problem Consider the following data as of July 2015 for Walmart and Target Corporation (in $...
Problem Consider the following data as of July 2015 for Walmart and Target Corporation (in $ billion) Sales EBIT Depreciation and Amortization Net Income Market Capitalization Cash Debt Walmart (WMT) 485.7 26.6 9.2 16.2 235.6 9.1 48.8 Target (TGT) 73.1 4.5 2.1 2.5 52.9 2.2 12.8 Compare Walmart's and Target's EBIT margins, net profit margins, P/E ratios, and the ratio of enterprise value to sales, EBIT, and EBITDA.
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You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.75 billion, price/earnings ratio = 20.5, common shares outstanding = 180 million, and market/book ratio = 1.4. The firm's market value of total debt is $7 billion, the firm has cash and equivalents totaling $350 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to...
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10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $3.25 billion, price/earnings ratio = 22, common shares outstanding = 180 million, and market/book ratio = 1.6. The firm's market value of total debt is $6 billion, the firm has cash and equivalents totaling $250 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not...
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following Walmart Statistics: Value: Market capitalization of common stock S258.80 billion Market value of debt $59.29 billion Cash $9.00 billion EBITDA $39.87 billion Target Statistics: Value: Market value of debt $14.73 billion Cash $1.91 billion EBITDA 58.14 billion Shares Outstanding 0.65 billion Using Target's financial data and their implied value using multiples, what is an estimate for their share price?...
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have collected the following: Walmart Statistics: Value: $264.57 billion $57.92 billion $8.96 billion $42.44 billion Market capitalization of common stock Market value of debt Cash EBITDA Target Statistics: Value: Market value of debt $14.48 billion Cash $1.84 billion EBITDA $8.23 billion Shares Outstanding 0.68 billion Using Target's financial data and their implied value using multiples, what is an estimate for their share price?
A) What is the enterprise value of Walmart? (express answer as
xx.xx billion)
B) What is the enterprise value/EBITDA multiple for Walmart?
C) Based on the EBITDA reported for Target, what is an estimate
for Target’s enterprise value using Walmart’s enterprise
value/EBITDA multiple?
D) Using Target's financial data and their implied value using
multiples, what is an estimate for their share price?
You are trying to find an implied value for Target Corporation using financial information from Walmart. You have...
Problem Consider the following data as of July 2015 for Walmart and Target Corporation (in $ billion) Sales EBIT Depreciation and Amortization Net Income Market Capitalization Cash Debt Walmart (WMT) 485.7 26.6 9.2 16.2 235.6 9.1 48.8 Target (TGT) 73.1 4.5 2.1 2.5 52.9 2.2 12.8 Compare Walmart's and Target's EBIT margins, net profit margins, P/E ratios, and the ratio of enterprise value to sales, EBIT, and EBITDA.
You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion, price/earnings ratio = 8.5, common shares outstanding = 170 million, and market/book ratio - 1.8. The firm's market value of total debt is $5 billion, the firm has cash and equivalents totaling $320 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to...
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