Comparables Valuation.
Part 8 (1-2 pages): Comparables ValuationIt is because that there is a very limited number of comparable companies, we only choose Tyson, Pilgrims 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 / SalesCompany20182019E2020E2021ETyson0.8×0.8×0.8×0.8xPilgrims Pride 0.5×0.7×0.6×0.6xHormel2.3×2.4×2.3×2.3xSanderson Farms0.6×0.8×0.8×0.8x
Enterprise Value / EBITDACompany20182019E2020E2021ETyson7.9×8.4×8.2×7.7xPilgrims Pride 7.7×8.0x7.0x6.8xHormel16.3×16.2×15.3×14.3xSanderson Farms14.6×14.3×12.0x12.0xEnterprise Value / EBITCompany20182019E2020E2021ETyson10.3×11.0x10.8×9.7xPilgrims Pride 12.0×11.3×9.9×9.2xHormel18.5×18.3×17.2×15.8xSanderson Farms69.1×42.9×30.2×26.6xPRICE / EARNINGCompany20182019E2020E2021ETyson9.7×11.0x10.39×9.1xPilgrims Pride 16.8×13.3×11.1×9.9xHormel22.5×23.3×21.8×20.4xSanderson Farms36.4×58.2×43.3×48.9x