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****Please answer A, B & C of #36 and CLEARLY IDENTIFY which is the answer to A, B, & C***** ered before using the equity
****Please answer A, B & C of #36 and CLEARLY IDENTIFY which is the answer to A, B, & C*****
ered before using the equity intrinsic value from part b for business decisions. 36. Identifying Comparables and Estimating Equity Value Using PE Assume that your superior requests that you estimate the equity intrinsic value of CGI Group Inc. using PE ratios for comparable companies-CGI Group is one of the world's largest information technology and business process services companies. The following online data are available from various companies ROE Market Cap mi Forward PE EPS 5-Year Historical Growth Rate Debt-to-Equity (Prior Q) Ticker (T 40) GIB EQIX .. $9,380 2,310 933 294 269 8,650 4,740 498 554 33.30 13.31 13.03 14.40 33.09 9.86 67.40 26.43 29.06 20.65% 7 72% 11 .60% 60.34% (15.91)% (24.05)% 26.59% 47.25% 9.50% (17.79% 15.99% 3.84% 16.53% 4.68% (18.89)% (12.57% 24.86% 16.86% (0.81)% (4.44)% 0.73 1.61 0.35 0.40 0.36 0.01 0.05 0.04 XXIA QNST NTES ULTI DMD DRIV 0.75 Required a. Identify the set of companies you plan to use as comparables. (Hint: Consider each company on basis of profitability, growth, and financial risk.) Estimate the equity intrinsic value of CGI Group. Its earnings estimate is $867 million. Prepare a memorandum to your superior identifying any issues that you believe should be ered before using the equity intrinsic value from part b for business decisions. b. c. consid 5-37. Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for TStep by Step Solution
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