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?