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Company As estimated EPS for the next twelve months (NTM) is $1.50. Its closest competitor, Company B, is trading at a P/E (NTM) of 22.
Company As estimated EPS for the next twelve months (NTM) is $1.50. Its closest competitor, Company B, is trading at a P/E (NTM) of 22. Assume the companies have a similar operating and financial profile. a. If Company A's stock were trading at $37.50, what would that indicate about its value relative to Company B? Explain.
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