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Use trailing P/E (price to earnings ratio) market comparable analysis to estimate the stock price of Apple. Apple's three peer firms are Amazon, Facebook, and
Use trailing P/E (price to earnings ratio) market comparable analysis to estimate the stock price of Apple. Apple's three peer firms are Amazon, Facebook, and Microsoft. Use a simple average of the peers to get the value to apply to Apple.
Here is information that will allow you to answer the question (note not all information is useful):
Stock Price | Trailing Earnings per share | Market to Book | Shares Outstanding | ||
Apple | 25 | 2 | 2.5 | 100 | |
Amazon | 190 | 5 | 4 | 50 | |
15 | 1.5 | 1.5 | 150 | ||
Microsoft | 45 | 5 | 2 | 200 |
(Round to the nearest dollar for you answer).
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