A friend would like to buy shares and need your help to decide which shares to buy. This information is available:

Your friend tells you that he is especially interested in purchasing ABSA shares based on the share price. would you agree with your friend? Explain why you agree or disagree.

Current share price EPS Current P/E

ABSA R71 R8.88 8

Capitec R98 R3.92 25

Net turnover growth 2015 2016 2017 2018 Arithmetic mean 5-year growth rate

Absa 5.24% 3.88% 6.01% 2.5% 4.5%

Capitec 15.5% 15.93% 17.38% 13% 16.84%