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Build a PB & PE Calculator using Fundamental Multiples with variable inputs for ROE, g & r ROE12.0%g3.0%r8.0%Use this Fundamental Multiple Calculator & estimate P/B

Build a PB & PE Calculator using Fundamental Multiples with variable inputs for ROE, g & r

ROE12.0%g3.0%r8.0%Use this Fundamental Multiple Calculator & estimate P/B & P/E for the following firms

rgCSXCSX railroad

8.4%2.5%FASTFastenal10.35%6.5%MPXMarine Products

8.0%4.0%Use the above discount rates & growth rates for each firm's fundamental multiple

You are responsible for calculating the rate of return on equity (ROE)

Obtain the most recent financial statements and estimate the following for each firm

Find net income for 2018

Find shareholders Equity (Book Value) for the end of 2017 (this is the beginning of 2018)

Calculate the fundamental P/B & P/E for each firm (given r, g & ROE)

Obtain the current P/B & P/E for each firm and compare them to the fundamental values

Find the percentage that the actual P/B & P/E are different from the fundamental value

Hint: current P/Es & P/Bs can be found on Yahoo Finance

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