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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

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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