Question
Assuming that all the companies in the list are comps, use the following data to answer the requirements being asked for 1. Should an investor
Assuming that all the companies in the list are comps, use the following data to answer the requirements being asked for
1. Should an investor buy BPI at P89.40 per share based on the average PE multiple? Yes or No?
2. How much is the relative value of East West Bank if the average PE multiple is used?
3. What is the relative value of China Bank if the average PB multiple is used?
4. If the median fair ratio is used, how much is the relative value of Metrobank using the P/Sales multiple?
5. Using the average P/book value multiple, what is the relative value of Union Bank?
6. Should you buy PNB at P22.75 per share if the median PE multiple is used? Yes or No?
7. Using the average P/Sales multiple, will you buy RCBC at P21/share?
FINANCIALS Source: edge.pse.com.ph MARKET PRICE 07/05/21 BOOKVALUE SHARES OUTSTANDING REVENUE EPS (basic) per SHARE BDO 114.30 6.37 88.11 BPI 89.40 4.74 62.01 CHINA BANK 25.55 4.49 39.08 EAST WEST 2.89 24.89 10.66 49.50 METROBANK 4,384,578,215.00 4,513,101,605.00 2,685,899,812.00 2,249,975,411.00 4,497,415,555.00 1,525,764,850.00 1,935,628,896.00 753,538,887.00 1,219,362,818.00 212,241,000,000.00 101,923,000,000.00 43,853,635,000.00 33,383,355,000.00 121,900,000,000.00 57,665,597,000.00 37,913,000,000.00 50,372,594,000.00 38,577,694,000.00 72.10 PNB 22.75 100.44 44.89 RCBC 3.08 1.71 2.43 9.86 9.48 21.00 124.00 77.00 SECURITY BANK UNION BANK 163.50 86.31Step by Step Solution
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