Your cousin purased shares in the French Utopia hotel group two years ago. He tells you that the earnings per share are currently €2 and that the share price has performed strongly over the last two years, rising by 25 per cent to €40. Hotel groups with an international profile similar to Utopia currently have price earnings ratios averaging around 16. Your cousin is questioning how well Utopia is performing relative to its competitors and asks if the EPS and share price can provide any insights into Utopia’s performance.

Required:
Use the information provided to comment on Utopia’s relative financial standing and performance.