BigV90
Oct 11, 2009, 04:10 PM
Hi I am having difficulty with this homework question.. I have some formulas.. but I don't know how to solve this question.can you please help.. thank you
GC company has a book value of $28374976, expected earnings of $2871872 and a cash-flow of $5169369.6. The company also has 1000000 shares outstanding. Knowing the market multiple from other stocks for P/E is 16.7 and the M/B from the broad market is 2 answer the following:
P/e is the price earning ratio =Price per share/Annual earnings per share
M/B=Market to book P/BVPS BVPS=Book value per share M/B=Market Price per share /Book value per share
a) What is the estimated stock price of GC based on P/E multiples?
b) What is the estimated stock price of GC based on M/B multiples?
GC company has a book value of $28374976, expected earnings of $2871872 and a cash-flow of $5169369.6. The company also has 1000000 shares outstanding. Knowing the market multiple from other stocks for P/E is 16.7 and the M/B from the broad market is 2 answer the following:
P/e is the price earning ratio =Price per share/Annual earnings per share
M/B=Market to book P/BVPS BVPS=Book value per share M/B=Market Price per share /Book value per share
a) What is the estimated stock price of GC based on P/E multiples?
b) What is the estimated stock price of GC based on M/B multiples?