If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company:

	Year 1	Year 2	Year 3	Year 4
High price	$48.60	$57.34	$69.46	$74.85
Low price	37.25	42.18	55.85	63.18
EPS	2.02	2.31	2.45	3.05

Earnings are expected to grow at 9 percent for the next year.