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Suppose CompanyA has EPS of $1.38. If the average P/E of comparable stocks is 21.3. Estimate a value for a share of CompanyA stock using

Suppose CompanyA has EPS of $1.38. If the average P/E of comparable stocks is 21.3. Estimate a value for a share of CompanyA stock using the P/E as a valuation multiple. What are the assumptions underlying this estimate?

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