FIN 630 University of Maryland MOD4 Enterprise Valuation TV Homework Worksheet
Description
Virgin Hawaiian
is a start-up low cost airline which started its service three years ago. Its historical revenues, net income
and free cash flows are shown below. Expected growth for the airline industry in the next 5 years is
16%
with subsequent
slow down to
3%
. The industry P/E is
12
and WACC is
9.8%
Estimate the range for the company’s market capitalisation.