After researching the competitors of Levi Strauss & Co (Levi’s), which is a private company, you determine that most comparable firms have the following valuation ratios (see the table below). Further research reveals that Levi Strauss’s EBITDA is $ 576.1 million and its Earnings per Share (EPS) is $1.5. The company has $25 million in cash, $1,441 million in debt (market value), and 84 million shares outstanding.
Urban Outfitters 
GAP 
Guess 
American Eagle 

EV/EBITDA 
5.1 
4.1 
5.8 
4.8 
P/E 
9 
8.3 
12.7 
11.5 
Estimate the stock price of Levi’s using the average EV / EBITDA of its competitors.
A. $29.31
B. $17.09
C. $33.09
D. $10.11
E. $25.95
F. $27.17
Use the information provided in the question above. Estimate the stock price of Levi’s using the average P / E of its competitors.
A. $47.24
B. $17.67
C. $15.56
D. $33.67
E. $18.25
F. $23.59
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