Question
The financial information of Z, Inc. is as follows: EBIT/share: $7 $4 10% Stock Price per share: $62 The industry averages of price-EBIT ratio,
The financial information of Z, Inc. is as follows: EBIT/share: $7 $4 10% Stock Price per share: $62 The industry averages of price-EBIT ratio, PE ratio and PEG ratio are 10, 16, and 1.5 respectively. What is the implied stock price of Z, Inc. using the PE ratio? EPS: Growth rate: What is the implied stock price of Z, Inc. using the PEG ratio? What is the implied stock price of Z, Inc. using the price-EBIT ratio? Which of the ratio indicates that Z is overvalued?
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Essentials Of Business Analytics
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
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