Crocs Inc valuation

1.Which of the companies in Exhibit 4 are good comparables to Crocs?
a.At the time of the case?
b.In five years?
c.Explain why
2.Why do the multiples of the mature firms in this selection set seem to be lower than those of the younger firms?
3.Use the multiples of your comparable companies to provide additional estimates of Crocs value using the data in Exhibit 5. Create an analysis using the Multiples Based Valuation table below which:
A.Calculates the current value of Crocs using current multiples (Historical Crocs Multiples are also below)
B.Calculates values for Crocs using Yeung’s cash flow model (Exhibit 6) but with a terminal value based on comparable multiples
Based on this analysis, is the Crocs share price prior to the decline justifiable or does the post decline price appear to be the new normal?
Include appropriate discussion describing your answers.
Export the completed table below into your answerCrocs, Inc.
Multiples-Based Valuation

Comparable Co.
Updated Comparable Multiples
Crocs Price Based on Multiple
Crocs Price with Multiple Based Terminal Value
EV to
EV to
EV to
EV to
EV to
EV to
EBITDA
Sales
EBITDA
Sales
EBITDA
Sales
Co. A






Co. D






Co. K






Co. P






Co. M






Average

Historical Crocs Price

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