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Based on comparisons with peer companies, Harry Wilson finds the justified price multiples for Syllogistics Ltd. are a P/E ratio of 15, a P/CF ratio

Based on comparisons with peer companies, Harry Wilson finds the justified price multiples for Syllogistics Ltd. are a P/E ratio of 15, a P/CF ratio of 11, a P/S ratio of 3, and a P/B ratio of 2.0. Syllogistics earnings per share are $4.10, its cash flow per share is $5.00, its sales per share is $18.00, and its book value per share is 24.00. Harry will estimate the value per share with each multiplier, and then use a weighted average of these estimates where the P/E estimate is weighted 0.5, the P/CF estimate is weighted 0.2, the P/S estimate is weighted 0.2, and the P/B estimate is weighted 0.1. What is the final estimated price per share for Syllogistics?

A.

$60.65

B.

$61.50

C.

$57.35

D.

$54.62

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