Question
The stock of company XYZ is currently price at $80 per share. Its earnings this year (T=0) are $4.00 per share. It has paid out
The stock of company XYZ is currently price at $80 per share. Its earnings this year (T=0) are $4.00 per share. It has paid out a dividend equal to 40% of its earnings for the past several years. Its Return on Equity (ROE) has been 15%.
Market Multiples
- If the forward Price / Earnings ratio for XYZ during similar stages of the business cycle had ranged from 11x to 18x, what would be the range of values for its stock?
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
