ABC Corp. has book value of equity of $3 million, earnings of $500,000 and 1 million...

Transcribed Image Text:

• ABC Corp. has book value of equity of $3 million, earnings of $500,000 and 1 million shares outstanding. • You have the following data on comparable companies: Comparable Stock price BV equity (per share) $10 $20 123 Corp. 456 Corp. $50 $140 EPS $2 $4 • Using only the data available, estimate the per share value of ABC. • ABC Corp. has book value of equity of $3 million, earnings of $500,000 and 1 million shares outstanding. • You have the following data on comparable companies: Comparable Stock price BV equity (per share) $10 $20 123 Corp. 456 Corp. $50 $140 EPS $2 $4 • Using only the data available, estimate the per share value of ABC.

Answer rating: 100% (QA)

To estimate the per share value of ABC Corp you can use the comparable company analysis CCA approach ... View the full answer