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What are the major problems faced by an investor to determine the fair value of a following company share? Income Statement 2015 2016 Revenue Depreciation

What are the major problems faced by an investor to determine the fair value of a following company share?

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Income Statement 2015 2016 Revenue Depreciation Other operating costs Income before taxes Taxes Net income Dividends Earnings per share Dividend per share Common shares outstanding (millions) Balance Sheet $ 474 20 368 86 26 60 18 $0.714 $0.214 84.0 2015 $ 598 23 460 115 35 80 24 $0.952 $0.286 84.0 2016 Current assets Net property, plant, and equipment Total assets Current liabilities Long-term debt Total liabilities Shareholders' equity Total liabilities and equity Capital expenditures $ 201 474 $ 675 57 0 $ 57 618 675 34 $ 326 489 $ 815 141 O $ 141 674 815 38 Required rate of return on equity Growth rate of industry Industry P/E ratio 14% 13% 26 Income Statement 2015 2016 Revenue Depreciation Other operating costs Income before taxes Taxes Net income Dividends Earnings per share Dividend per share Common shares outstanding (millions) Balance Sheet $ 474 20 368 86 26 60 18 $0.714 $0.214 84.0 2015 $ 598 23 460 115 35 80 24 $0.952 $0.286 84.0 2016 Current assets Net property, plant, and equipment Total assets Current liabilities Long-term debt Total liabilities Shareholders' equity Total liabilities and equity Capital expenditures $ 201 474 $ 675 57 0 $ 57 618 675 34 $ 326 489 $ 815 141 O $ 141 674 815 38 Required rate of return on equity Growth rate of industry Industry P/E ratio 14% 13% 26

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