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Problem 6 Coca-Cola has expected EPS of $1.5. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.23 21.37 Part
Problem 6
Coca-Cola has expected EPS of $1.5. Its competitors have the following P/E ratios:
Dr Pepper | Nestle | Pepsico | |
P/E ratio | 22.07 | 23.23 | 21.37 |
Part 1
What is the intrinsic value based on the lowest P/E ratio?
Part 2
What is the intrinsic value based on the highest P/E ratio?
Part 3
What is the intrinsic value based on the average P/E ratio?
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