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What is the share price used the P/E ratio? I think I'm supposed to find the average of some values. Problem 6-23 Price Ratio Analysis
What is the share price used the P/E ratio?
I think I'm supposed to find the average of some values.
Problem 6-23 Price Ratio Analysis for Internet Companies (L04, CFA8) Given the information below for HooYahl Corporation, compute the expected share price at the end of 2017 using price ratio analysis. Assume that the historical average growth rates will remain the same for 2017 (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual P/E and P/CFPS ratios from the average P/E and average P/CFPS ratio calculations. When computing annual growth rates, use a positive sign on the annual rate of change if the per share value increased in value and use a negative sign on the annual rate of change if the per share value deceased in value.) Year Price EPS 2011 $8.00 4. 2012 $44.5e -3.30 2013 $116.ee -1.80 2014 $ 193.82 -0.55 2015 583.00 0.04 2016 $13.50 0.06 0. CFPS SPS -6.50 13.5e -2.80 18.12 -0.25 20.30 0.03 23.30 s.ee Share price Using P/E ratio Using PICF ratio Using P/S ratio $ S 223.29 132 29 Step by Step Solution
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