Ask Experts Questions for FREE Help !
Ask
    parikhnavin's Avatar
    parikhnavin Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 17, 2009, 08:48 PM
    How to price stock
    Given PE ratio, share capital, EPS, Cash EPS and other related information, how to calculate fair share price of the stock ?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
     
    #2

    Aug 18, 2009, 04:44 AM
    Working just with what you're given, note that

    .

    Also note that unless stated otherwise, PE ratios use standard EPS rather than cash EPS.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Stock price, stock trading and shares [ 2 Answers ]

Warnes Motors' stock is trading at $20 a share. Three-month call options with an exercise price of $20 have a price of $1.50. Which of the following will occur if the stock price increases 10% to $22 a share? a. The price of the call option will increase by $2. b. The price of the call option...

Stock Price [ 1 Answers ]

Miller Juice is a young company that currently does not pay a dividend. The company retains all their earnings to finance their growth. However, ten years from now the company is expected to start paying a $1.50 dividend. According to research reports the dividend should then grow by 5% annually...

Price of a stock [ 1 Answers ]

1What would be the price of a stock when next year’s dividend is expected to be $4.00, and then is expected to grow at a 25% rate for two years after that, and then grow at a constant rate of 5% thereafter? The stock’s required return is 13% 2What is the required return for a stock that has a 6%...


View more questions Search