FE13 - Valuation Multiples Case - TJX Companies PDF

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FE13 - Valuation Multiples Case - TJX Companies...

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FE323 Company Valuation Multiples – TJX Companies Inc. 1. The Following is Selected Financial Data for TJX Companies Inc. (NYSE: TJX) for FY2017 (In Millions). TJX has 646 Million Shares outstanding and the Price per share is $74. Revenue Depreciation EBIT Net Income Investment in Net Working Capital Capital Expenditures a) b) c) d) e)

$33,183 659 3,750 2,298 531 1,027

Cash & Cash Investments Total Assets Long Term Debt Total Liabilities Total Shareholders’ Equity Total Liabilities. & SH Equity

$543 12,884 2,228 8,373 4,511 12,884

What is the Market Capitalization of TJX? What is The Enterprise Value of TJX? What is the Price/Earnings (P/E) ratio of TJX? What is the Enterprise Value/EBITDA Multiple for TJX? If Primark Clothing Stores, a company comparable to TJX, has an EBITDA of $675 Million, Net Income of $306 Million, $1 Billion of Net Debt and 85 Million common shares outstanding. Using 2 valuation multiples, what is the range that you might expect one share of Primark to trade at if it were a public company?

Rev: 10/2019 ©John F Fox

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BDH Chapter 10 Q4 (Modified) 2. Portage Bay Enterprises has $1Million in Excess cash, no debt, and is expected to have a $6 million Free Cash flow next year. In year 2 it expects its free cash flow will be $10 million and thereafter is then expected to grow at a rate of 3% forever. If Portage Bay’s equity cost of capital is 11% and it has 5 million shares outstanding what is the Price per share of Portage Bay stock?

Rev: 10/2019 ©John F Fox

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