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Firm X is undergoing an IPO and is issuing 50 million shares. Potential investors compare similar firms to try to gauge a value for Firm

Firm X is undergoing an IPO and is issuing 50 million shares. Potential investors compare similar firms to try to gauge a value for Firm X. Firm X has reported earnings of $36.2 million and sales of $566 million. Use the information below to determine an appropriate price range for Firm X

Firm P/E P/S

A 22.4 1.6

B 27.6 1.4

C 18.4 1.9

D 25.9 1.3

E 32.3 1.5

F 29.6 1.8

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