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The following information is for company XYZ. It is based in the USA. The following information was given: EPS: $3.80 Book Value of debt: $2

The following information is for company XYZ. It is based in the USA.

The following information was given:

EPS: $3.80

Book Value of debt: $2 Billion

Book Value of equity: $4 Billion

Total shares: 70 million

As of today, share price is $90. Beta is 1.30.

Please note: XYZ pays a spread of 20 bp (basis points) over treasuries on its debt.

Assume ERP 7%. Risk-free 2%. Tax 30%.

What is the forwards PEG ratio?

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