solve the stock valuation using the multiples method

Example 1: A stock is selling for 30 dollars. Earning for the last 12 months were 1.5 dollars per share. The average trailing P/E ratio for this stocks industry is 23 times. Determine whether this stock is over- or undervalued.

Example 2: an analyst estimate the EPS of stock B in five years to be $2, the EPS in six years to be $2.5, and the median trailing industry P/E ratio to be 30. Calculate the terminal value in year 5.