See Table showing financial statement data and stock price data for Mydeco Corp.
a. Compute Mydeco's PE ratio each year from 2009 to 2013. In which year was it the highest?
b. What was Mydeco's Enterprise Value to EBITDA ratio each year. In which year was it the highest?
c. What might explain the differing time pattern of the two valuation? ratios?
a. Compute Mydeco's PE ratio each year from 2009 to 2013.
Calculate the PE ratio for 2009-2013 below:
Table
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?2009--2013 Financial Statement Data and Stock Price Data for Mydeco Corp.
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Mydeco Corp.? 2009--2013 (All data as of fiscal year? end, in? $ million)
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Income Statement
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2009
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2010
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2011
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2012
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2013
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Revenue
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404.3
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363.8
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424.6
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510.7
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604..1
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Cost of Goods Sold
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( 188.3 )
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( 173.8 )
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( 206.2 )
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( 246.8 )
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( 293.4 )
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Gross Profit
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216.0
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190.0
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218.4
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263.9
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310.7
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Sales and Marketing
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( 66.7 )
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( 66.4 )
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( 82.8 )
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( 102.1 )
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( 120.8 )
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Administration
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( 60.6 )
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( 59.1 )
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( 59.4 )
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( 66.4 )
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( 78.5 )
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Depreciation? & Amortization
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( 27.3 )
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( 27.0 )
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( 34.3 )
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( 38.4 )
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( 38.6 )
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EBIT
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61.4
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37.5
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41.9
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57.0
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72.8
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Interest Income? (Expense)
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( 33.7 )
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( 32.9 )
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( 32.2 )
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( 37.4 )
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( 39.4 )
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Pretax Income
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27.7
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4.6
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9.7
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19.6
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33.4
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Income Tax
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( 9.7 )
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( 1.6 )
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( 3.4 )
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( 6.9 )
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( 11.7 )
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Net Income
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18.0
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3.0
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6.3
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12.7
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21.7
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Shares outstanding? (millions)
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55
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55
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55
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55
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55
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Earnings per share
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$ 0.33
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$ 0.05
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$ 0.11
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$ 0.23
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$ 0.39
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Balance Sheet
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2009
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2010
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2011
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2012
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2013
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Assets
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Cash
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48.8
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68.9
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86.3
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77.5
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85.0
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Accounts Receivable
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88.6
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69.8
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69.8
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76.9
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86.1
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Inventory
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33.7
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30.9
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28.4
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31.7
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35.3
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Total Current Assets
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171.1
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169.6
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184.5
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186.1
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206.4
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Net? Property, Plant? & Equip.
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245.3
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243.3
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309.0
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345.6
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347.0
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Goodwill? & Intangibles
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361.7
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361.7
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361.7
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361.7
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361.7
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Total Assets
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778.1
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774.6
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855.2
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893.4
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915.1
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Liabilities? & Stockholders' Equity
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Accounts Payable
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18.7
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17.9
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22.0
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26.8
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31.7
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Accrued Compensation
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6.7
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6.4
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7.0
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8.1
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9.7
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Total Current Liabilities
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25.4
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24.3
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29.0
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34.9
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41.4
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?Long-term Debt
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500.0
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500.0
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575.0
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600.0
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600.0
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Total Liabilities
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525.4
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524.3
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604.0
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634.9
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641.4
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?Stockholders' Equity
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252.7
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250.3
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251.2
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258.5
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273.7
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Total Liabilities? & Stockholders' Equity
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778.1
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774.6
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855.2
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893.4
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915.1
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Statement of Cash Flows
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2009
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2010
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2011
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2012
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2013
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Net Income
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18.0
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3.0
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6.3
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12.7
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21.7
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Depreciation? & Amortization
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27.3
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27.0
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34.3
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38.4
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38.6
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Chg. in Accounts Receivable
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3.9
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18.8
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0.0
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( 7.1 )
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( 9.2 )
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Chg. in Inventory
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( 2.9 )
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2.8
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2.5
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( 3.3 )
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( 3.6 )
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Chg. in Pay.? & Accrued Comp.
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2.2
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( 1.1 )
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4.7
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5.9
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6.5
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Cash from Operations
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48.5
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50.5
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47.8
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46.6
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54.0
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Capital Expenditures
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( 25.0 )
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( 25.0 )
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( 100.0 )
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( 75.0 )
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( 40.0 )
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Cash from Investing Activ.
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( 25.0 )
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( 25.0 )
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( 100.0 )
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( 75.0 )
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( 40.0 )
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Dividends Paid
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( 5.4 )
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( 5.4 )
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( 5.4 )
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( 5.4 )
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( 6.5 )
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Sale? (or purchase) of stock
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?-
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?-
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?-
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?-
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?-
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Debt Issuance? (Pay Down)
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?-
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?-
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75.0
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25.0
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?-
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Cash from Financing Activ.
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( 5.4 )
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( 5.4 )
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69.6
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19.6
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( 6.5 )
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Change in Cash
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18.1
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20.1
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17.4
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( 8.8 )
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7.5
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Mydeco Stock Price
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$ 7.92
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$ 3.30
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$ 5.25
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$ 8.71
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$ 10.89
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