parikhnavin
Aug 17, 2009, 08:48 PM
Given PE ratio, share capital, EPS, Cash EPS and other related information, how to calculate fair share price of the stock ?
ArcSine
Aug 18, 2009, 04:44 AM
Working just with what you're given, note that
\frac{\mbox{Price}}{\mbox{Earnings}} \ \times\ \mbox{Earnings} \ =\ \mbox{Price}.
Also note that unless stated otherwise, PE ratios use standard EPS rather than cash EPS.