Suppose Rocky Brands has earnings per share of $2.26 and EBITDA of $31.2 million. The...
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Suppose Rocky Brands has earnings per share of $2.26 and EBITDA of $31.2 million. The firm also has 4.8 million shares outstanding and debt of $120 million (net of cash). You believe Jared's Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Jared's has no debt. If Jared's has a P/E of 13.4 and an enterprise value to EBITDA multiple of 7.3, estimate the value of Rocky Brands stock using both multiples. Which estimate is likely to be more accurate
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