Comparables Valuation.
Autor: Yifei Liao • March 19, 2019 • Coursework • 320 Words (2 Pages) • 393 Views
Part 8 (1-2 pages): Comparables Valuation
It is because that there is a very limited number of comparable companies, we only choose Tyson, Pilgrim's Pride Corporation, Hormel and Sanderson Farms these four company to make comparable valuation. What’s more, since equity multiples could be impacted by the change of capital structure, we mainly choose enterprise value multiples to do the valuation. We select EV/Sales, EV/EBITDA, EV/EBIT and P/E these four ratios as multiples to do that.
Enterprise Value / Sales | ||||
Company | 2018 | 2019E | 2020E | 2021E |
Tyson | 0.8x | 0.8x | 0.8x | 0.8x |
Pilgrim's Pride | 0.5x | 0.7x | 0.6x | 0.6x |
Hormel | 2.3x | 2.4x | 2.3x | 2.3x |
Sanderson Farms | 0.6x | 0.8x | 0.8x | 0.8x |
Enterprise Value / EBITDA | ||||
Company | 2018 | 2019E | 2020E | 2021E |
Tyson | 7.9x | 8.4x | 8.2x | 7.7x |
Pilgrim's Pride | 7.7x | 8.0x | 7.0x | 6.8x |
Hormel | 16.3x | 16.2x | 15.3x | 14.3x |
Sanderson Farms | 14.6x | 14.3x | 12.0x | 12.0x |
Enterprise Value / EBIT | ||||
Company | 2018 | 2019E | 2020E | 2021E |
Tyson | 10.3x | 11.0x | 10.8x | 9.7x |
Pilgrim's Pride | 12.0x | 11.3x | 9.9x | 9.2x |
Hormel | 18.5x | 18.3x | 17.2x | 15.8x |
Sanderson Farms | 69.1x | 42.9x | 30.2x | 26.6x |
PRICE / EARNING | ||||
Company | 2018 | 2019E | 2020E | 2021E |
Tyson | 9.7x | 11.0x | 10.39x | 9.1x |
Pilgrim's Pride | 16.8x | 13.3x | 11.1x | 9.9x |
Hormel | 22.5x | 23.3x | 21.8x | 20.4x |
Sanderson Farms | 36.4x | 58.2x | 43.3x | 48.9x |
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