Identifying Comparables and Valuation using PB and PE Tailored Brands Inc.’s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Ticker Market Cap($ mil.) PB Current Forward PE (FY1) EPS 5-Year Historical Growth Rate ROE (T 4Q) Debt-to- Equity (Prior Year) TLRD -- -- -- (0.47)% 22.50% 2.53 GCO 585.7 1.00 9.699 (323.73)% (5.86)% 0.13 ZUMZ 789.7 1.95 14.17 3.28% 13.85% 0.00 GES 1,147.0 2.07 13.19 (37.69)% 1.90% 0.56 ANF 988.2 1.00 19.69 9.37% 6.35% 0.25 TLYS 293.7 1.68 11.6 5.51% 13.93% 0.00 M 4,760.0 0.75 5.458 (1.74)% 16.70% 0.74 (a) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD’s equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places for your calculation. Round your answer to the nearest million.) Answer: (b) Use the same comparables as in part b and estimate TLRD’s equity intrinsic value using the PE ratio from these peer companies. (Round average PE ratio to two decimal places for your calculation. Round your answer to the nearest million.) Answer:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 7PA: Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then...

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Identifying Comparables and Valuation using PB and PE

Tailored Brands Inc.’s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector.

Ticker	Market Cap($ mil.)	PB Current	Forward PE (FY1)	EPS 5-Year Historical Growth Rate	ROE (T 4Q)	Debt-to- Equity (Prior Year)
TLRD	--	--	--	(0.47)%	22.50%	2.53
GCO	585.7	1.00	9.699	(323.73)%	(5.86)%	0.13
ZUMZ	789.7	1.95	14.17	3.28%	13.85%	0.00
GES	1,147.0	2.07	13.19	(37.69)%	1.90%	0.56
ANF	988.2	1.00	19.69	9.37%	6.35%	0.25
TLYS	293.7	1.68	11.6	5.51%	13.93%	0.00
M	4,760.0	0.75	5.458	(1.74)%	16.70%	0.74

(a) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD’s equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places for your calculation. Round your answer to the nearest million.)

Answer:

(b) Use the same comparables as in part b and estimate TLRD’s equity intrinsic value using the PE ratio from these peer companies. (Round average PE ratio to two decimal places for your calculation. Round your answer to the nearest million.)

Answer:

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