Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stock valuation using the multiple (comps) method: Below, P/E ratio for The Procter & Gamble Company and four similar firms (comps) are provided. The annual
Stock valuation using the multiple (comps) method: Below, P/E ratio for The Procter & Gamble Company and four similar firms (comps) are provided. The annual earnings per share (EPS) of The Procter & Gamble Company is $7.53. Currently, the stock of The Procter & Gamble Company is trading in the market at $140.82.
Stock Value: Four Comps Method | |
25.77 | <-- P/E of The Procter & Gamble Company |
19.96 | <-- 1) P/E of Target Corporation |
46.08 | <-- 2) P/E of Amazon.com, Inc. |
9.35 | <-- 3) P/E of Macy's, Inc. |
39.84 | <-- 4) P/E of Costco Wholesale Corporation |
$ 7.53 | <-- EPS of The Procter & Gamble Company |
How much is the stock value of this company using the "Comps" method?
Enter your answer in the following format: 12.34 Hint: Answer is between 197.4 and 242.95
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started