Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company expects EPS to be $3.97 next year. The industry average P/E ratio is 43.59 and Enterprise multiple is 6.04. The EBITDA for the

image text in transcribed

A company expects EPS to be $3.97 next year. The industry average P/E ratio is 43.59 and Enterprise multiple is 6.04. The EBITDA for the company is $23.51 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investing In The Trump Era How Economic Policies Impact Financial Markets

Authors: Nicholas P. Sargen

1st Edition

3319760440,3319760459

More Books

Students also viewed these Finance questions