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Financial information for Dell and Apple (as of 12/31/2019) Dell Apple Market Price 167.77 230.09 Price/sales 1.36 4.01 Trailing P/E 16.3 19.54 Forward P/E 15.01
Financial information for Dell and Apple (as of 12/31/2019) | ||
Dell | Apple | |
Market Price | 167.77 | 230.09 |
Price/sales | 1.36 | 4.01 |
Trailing P/E | 16.3 | 19.54 |
Forward P/E | 15.01 | 18.06 |
Enterprise value | 94.99 billion | 1.04 trillion |
Return on assets (ROA) | 3.75% | 11.99% |
Current ratio | 2.02 | 1.5 |
Payout ratio | 28.86% | 25.13% |
Diluted EPS | 10.38 | 11.78 |
Earnings before interest, taxes, and depreciation (EBITDA) | 6.15 billion | 76.54 billion |
Use the information above and the market multiples method of valuation to calculate the intrinsic value of Dell based on the growth prospects of Apple, proxied for by using the trailing P/E ratio.
Group of answer choices
A. $213.85/share
B. $142.18/share
C. $202.74/share
D. $94.99/share
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