$1.$ What is Bank of America's and three comparables which are JPMorgan Chase & Co$.($JPM$),$ Wells Fargo & Company $($WFC$),$ and Citigroup Inc. $($C$)$:

Current stock price?

The earnings per share $($EPS$)^2?$

The P$/$E $($price$-$to$-$earnings ratio$/$multiple$)?$

$2.$ You are going to estimate the value of your recommended stock by using $$comparables$$ approach. This approach is similar to the valuation approach we see in the real estate market. If your neighbor$$s home just sold for $$300,000($$$100$ per square foot$)$ and it has similar size, number of bedrooms$/$bathrooms$,$ and amenity to your home. Your house, being a bit larger with $3500$ square feet, is probably worth $$100$ x $3500=$ $ $350,000.$ In the stock market, we are going to assume that comparable firms will have similar multiples. We are going to use the most common multiple, the price$-$to$-$earnings $($P$/$E$)$ multiple $($or P$/$E ratio$),$ and calculate an estimate of the company$$s stock value using the following formula. Estimated Stock Value $($recommended firm$)=$ EPS $($recommended firm$)$ x average P$/$E ratio of three comparable firms

$3.$ Compare your estimated stock value to the actual stock price. What recommendations can you make as to whether your friends should buy or sell the stock based on your value estimate. If you would like to provide value estimates based on other models, please explain the calculation process clearly.