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Exercise 13-22 (Algo) Price-earnings ratio computation and interpretation LO A1 Company Earnings per Share Market Value per Share Hilton $ 10.00 $ 160.00 SPG 8.00

Exercise 13-22 (Algo) Price-earnings ratio computation and interpretation LO A1

Company Earnings per Share Market Value per Share
Hilton $ 10.00 $ 160.00
SPG 8.00 77.60
Hyatt 6.00 76.80
Accor 33.00 224.40

Compute the price-earnings ratio for each of these four separate companies. For which of these four companies does the market have the lowest expectation of future performance?

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