compute value of stock for IPO under price earnings multiple method

212 Valuation Using Price-Earnings Multiples. The Fellows Company is planning an initial public offering (IPO) and management would like to have an idea of an appropriate price to charge for a share of its stock. The company plans to issue 100,000 shares. The Fellows Company's most recent earnings per share (EPS) are S1.30; however, the consensus forecast among analysts who follow the company is for EPS to be S1.45. The EPS and share price of four comparable firms are shown below: Compute the value of a share of Fellows Company stock using the price-eamings multiples method