Tottenham Hotspur

Question 1

We are going to be looking at multiple valuation techniques today, so firstly lets look at mutiples, now find the average EV/revenue including spurs, not including spurs and not including Man U and Arsenal( they are a level ahead, after calculate value ( mutiply by revenue, by average excluding Spurs and excluding spurs and the top 2)

Answer 1

We have now find the enterprise value with all the conditions specified.

Question 2

So we have calculated the multiple based on Enterprise value( I think its revenue) , but if we want to answer the question, based on mutiples fairly priced or not relative to what the peers imply, but we only have the enterprise value, but we need to go to the implied share price so what must we do we are excluding spurs btw? All find the implied share price taking away spurs and the top 2

Answer 2

I need to go to the implied share price of the club, so we find equity value of the club by taking away net debt from EV and divide by number of shares to find share price.

Question 3

Lets compute a multiple of EV/average Points, calculate the average mutiples excluding spurs and excluding spurs and Man U, Arsenal. Find the implied share price and what does it imply if Spurs share price is 13.8?

Answer 3

Spurs is quite, cheap, we see this from the other multiple example too.

Question 4

If a firm has no growth, what will it mean for WACC and APV? If there is growth and the the debt to equity changing constantly than using the APV…

Answer 4

No impact the It will give the same answer.

APV makes sense.