Let's add our EV/EBITDA methodology The first thing I need to decide is which year to use? Am I going to use last 12 months, calendarized year 1 i.e. this year Or calendarized year 2 (next year) Let's go to the comparable tab and have a look at the information that we will be using We've got four companies and Tumi is one of our companies, so we've only really got three companies that we can use to compare to Tumi If we scroll to the right, here's my EV/EBITDA information If we were doing an LBO valuation, then I would be quite tempted to use the last 12 months LBO valuations have a conservative view and they want to focus on debt pay down, they want to look at the actual figures that have really happened But as we're looking at trading comparable, I'll be looking more towards calendarized year 1 or year 2 The one that looks a little strange here is Burberry. Burberry's figures are a little bit low here So we might question, are they really a good fit? If we look a little further up the page, we can see that Burberry's growth is a little bit low In fact it's actually negative when compared to the other three companies, quite tempted to exclude Burberry So looking at calendarized year 1 (2016), I'm now looking at 10.5 as my low and 10.6 as my high. That's a very narrow range Ideally I'd like something a little bit wider, otherwise I'm saying with a lot of confidence my valuation range is this small So I'm more tempted to go for calendarized year 2 Samsonite is our low of 9 and LVMH is our high of 10 times So let's put them into our football field, Samsonite is going to be the low And LVMH is going to be our high We said that we were going to use EV/EBITDA, if I calendarize year 2 multiple So Samsonite was the low of 9 and LVMH was a high of 10 You might notice that I've hardcoded this in here, now that's a personal thing. Why might I have done that? Well it's very easy for me in my comparable valuation tab to start chopping companies in and out That means that those figures could very easily flow through here by accident Great! So we've now chosen our multiples and it's very important to include the company names above as well Remember this isn't just a mathematical calculation, it's a judgement as well We're saying that Tumi's value is relative to Samsonite and LVMH We might find that Tumi's value is above that of Samsonite and LVMH or below If it's outside the range, why is that? Because Tumi may be different to these companies, so do make sure you include those company names We now want to calculate our enterprise value and then find an implied share price So I now need to find my EBITDA calendarized year 2 for Tumi. I'll find that on the Tumi 1 tab Remember I do want the calendarized figures because I said that I want to calendarize year 2 (that's 2017) So for 124.9 will be the figure that we want I'm going to lock that figure and then copy it over to the right hand side as well (our high column) So our implied EV is the multiple times by EBITDA I now go up and over my bridge, so I'm going to plus my financial assets Less the financial liabilities And we've got the a little bit further up in our key data section We can now calculate an implied equity value Take the EV plus the financial assets, minus our financial liabilities And then we can get to our implied share price by dividing by diluted shares outstanding Again I'm going to lock that, so I can copy it to the right So our valuation using EBIT/EBITDA calendarization year 2 methodology is done