Question
Today is January 31, 2018. You are valuing a company using multiple methodologies. You obtained the following per-share value for Discounted Cash Flow, Residual Earnings,
Today is January 31, 2018. You are valuing a company using multiple methodologies. You obtained the following per-share value for Discounted Cash Flow, Residual Earnings, and Earnings Growth Analysis respectively:
Discounted Cash Flow $22.14
Residual Earnings 21.44
Earnings Growth 31.11
The long-run historical average P/E ratio for the firm is 2.00.
The long-run historical average earnings-per-share for the firm is $3.00.
Required:
what is the final per-share value? Using Discounted Cash Flow, Residual Earnings, Earnings Growth Analysis as well as P/E ratio.
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
