Question
You are a value investor and are interested in applying the historical average graham number to calculate the intrinsic value of a stock. This company
You are a value investor and are interested in applying the historical average graham number to calculate the intrinsic value of a stock. This company has earnings per share (EPS) of $4.13 and book value per share (BVPS) of $25.14. You have observed that the current P/E ratio of the company is 19.1, but its 5-year historical average is 17.2. You have observed that the current P/B ratio of the company is 2.95, but its 5-year historical average is 3.03. What is the estimated intrinsic value for this stock? State your answer as a dollar amount with two decimal places.
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