Question
AviBank Plastics generated an EPS of $2.87 over the last 12 months. Thecompany's earnings are expected to grow by 24.8% nextyear, and because there will
AviBank Plastics generated an EPS of $2.87 over the last 12 months. Thecompany's earnings are expected to grow by 24.8% nextyear, and because there will be no significant change in the number of sharesoutstanding, EPS should grow at about the same rate. You feel the stock should trade at aP/E of around 26 times earnings. Use theP/E approach to set a value on this stock.
Using theP/E approach, what is the value on this stock?
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
10th edition
978-1-119-3061, 1119306167, 978-1119444367
