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Below is the historical information of Company XYZ: Year 2017 Year 2018 Year 2019 Year 2020 Stock price $ 51.45 $ 60.72 $ 69.94 $
Below is the historical information of Company XYZ: |
Year 2017 | Year 2018 | Year 2019 | Year 2020 | ||||||||||||
Stock price | $ | 51.45 | $ | 60.72 | $ | 69.94 | $ | 63.50 | |||||||
EPS | 2.66 | 2.78 | 3.06 | 3.24 | |||||||||||
The market thinks that Company XYZs average PE ratio over the past 4 years can be a good benchmark for valuations.
It is also forecasted that earnings of Company XYZ will grow at a rate of 14% in 2021.
Please calculate the target stock price for Company XYZ in 2021
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