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Vick Resources has a P/E ratio of 15, a P/S ratio of 5, and a P/B ratio of 2.5. Vicks earnings per share are 2.15,
Vick Resources has a P/E ratio of 15, a P/S ratio of 5, and a P/B ratio of 2.5. Vicks earnings per share are 2.15, its sales per share are 8.00, and its book value per share is $16. An analyst will estimate the value per share with each multiplier, and then use a weighted average of these estimates where the P/E estimator is weighted 0.5, the P/S estimator is weighted 0.3, and the P/B estimator is weighted 0.2. What is the final estimated price per share for Vick?
A. | $40.75 | |
B. | $42.25 | |
C. | $37.42 | |
D. | $36.12 |
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