Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can someone help me figure this table out? I already got some of the numbers but I need to know how to calculate it 5.1.
Can someone help me figure this table out? I already got some of the numbers but I need to know how to calculate it
5.1. Create a P/E table and a Price/Sales table if your company has no earnings. The only difference for the price sales table is that you now estimate a pessimistic, expected, and optimistic price/sales ratio along with revenue estimates. To obtain Revenue estimates, EPS, P/E and P/S use Refinitiv Eikon or Bloomberg applications. After typing in your ticker, on the left hand side, click Estimates and then Detail Estimates. There should be an average, low, and high estimate. Use the next year figures as we are trying to calculate what your stock will be worth next year. 5.2. After calculating your stock estimates, you can also calculate return estimates by simply taking next year's expected price and dividing it by the current stock price minus one to determine your expected return. Do this. Below is an example for the P/E : If the current stock price is $25, your P/E table would look like this: Table X: Stock Price and Stock Return Estimates Table X shows the stock price estimates for XXX (your stock) next year using PE ratios. Both pessimistic and optimistic PE ratios are given along with the expected PE ratio. These ratios are combined with low, average, and high EPS estimates. The expected stock price and return is $28 and 12% respectively. Estimates range from $18,(28%) to $48,(92%)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started