Question
(4) Assuming that Novartis AG (NVS) has an EPS of $3.35, based upon the price-to-earnings ratios for its competitors, estimate the lowest expected stock price
(4) Assuming that Novartis AG (NVS) has an EPS of $3.35, based upon the price-to-earnings ratios for its competitors, estimate the lowest expected stock price for Novartis?
| Company | Ticker | Price per Share | Earnings per Share | Book Value per Share | Price/ Earnings | Price/ Book |
| Abbott Labs | ABT | 54.35 | 3.69 | 13.79 | 14.73 | 3.94 |
| Bristol-Myers- Squibb | BMY | 25.45 | 1.93 | 7.33 | 13.19 | 3.47 |
| GlaxoSmithKline | GSK | 41.3 | 3.15 | 6.03 | 13.11 | 6.85 |
| Johnson & Johnson | JNJ | 62.6 | 4.58 | 18.27 | 13.67 | 3.43 |
| Merck | MRK | 36.25 | 3.81 | 10.86 | 9.51 | 3.34 |
| Pfizer | PFE | $18.30 | $1.20 | 8.19 | 15.25 | 2.23 |
| Average |
|
|
|
| 13.24 | 3.88 |
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Handbook Of Alternative Assets
Authors: Mark J. P. Anson
2nd Edition
047198020X, 978-0471980209
