VALUATION CONCEPTS AND METHODOLOGIES Problems P6-1. Compute for the price earnings ratio if the earnings per share is Php5.50: Market Value per P:E Ratio share 27.500 30.250 CI A W N - 22.000 17.875 28.875 P6-2. LMVL Co., a publicly listed company, reported earnings for the year amounting to Php25 Million with outstanding shares of 1 Million. The market value per share of LMVL Co. is Php122. What the P/E Ratio of LMVL Co. (round your answer to the nearest ones)? Suppose that LMVL Co. sets as the industry leader, LVVL Co. another player in the same industry is being eyed by an investor. The reported EPS of LVVL Co. is Php10. If the investor is aware of the LMVL Co.'s performance, how much should the investor value LVVL Co.? P6-3. Listed Automobile industry players has the following market value and earnings per share: Player Market Value Earnings Per P/E Ratio per Share Share A 46.50 5.00 CO 45.24 6.03 16.25 2.18 25.11 3.72 m 34.32 4.29 An analyst is looking into the performance of another firm in the same industry but is not listed, the company reported earnings of Php1.25 per share. How much is the value of the firm? P6-4. Bebe Co. declared dividends of Php2 per share for their performance last year after the declaration of dividends the market value per share increased to Php45 per share. What is the dividend yield ratio of Bebe Co.? 173 VALUATION CONCEPTS AND METHODOLOGIES P6-5. Lumina Inc.'s statement of financial position as of December 31, 2019 reported the following: Asset - Php400 Million; Liabilities - Php100 Million; Equity - Php300 Million with outstanding shares of 10 Million. The Lumina's stock is already selling at Php37 per share. How much is the Book-to- Market Ratio? Assuming Lumina Inc has not available market information, but the industry Book-to-Market Ratio is 1.2 what is the market value of Lumina? P6-6. Ancient Times Corp., a closed corporation and selling its shares to an investor. The statement of income of the company for the period ending December 31, 2019 is as follows: Ancient Times Corp. Statement of Income For the Period Ending December 31, 2019 (in million pesos) Revenue 1500 177 / 218 . . Cost of Sales 900 Gross Profit 600 Operating Expenses 300 Operating Income 300 Interest Expense 75 Net Income 225 Ancient Times depreciation is Php50 million and is exempted from paying corporate income tax. The industry where Ancient Times recognizes the EBITDA Multiple of 2.75. How much is the EBITDA of Ancient Times for the Period? . How much is the market value of Ancient Times? If the owners is willing to sell 50% of the ownership at Php500 Million, are you going to buy the company's stake