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You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The
You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable companies are provided below. What is your estimate for the company's stock price? Round to one decimal place. (Hint: Compute the corresponding valuation multiple of the comparables and take simple average across the three comparable companies. Then apply this average multiple to Gamecocks Inc.] Stock Price EPS (TTM) EPS (next year) EPS growth 5Y $18.3 $1.04 $1.22 5.1% $26.3 $1.12 $1.42 6.9% $55.9 $2.11 $2.80 10.2% You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable companies are provided below. What is your estimate for the company's stock price? Round to one decimal place. (Hint: Compute the corresponding valuation multiple of the comparables and take simple average across the three comparable companies. Then apply this average multiple to Gamecocks Inc.] Stock Price EPS (TTM) EPS (next year) EPS growth 5Y $18.3 $1.04 $1.22 5.1% $26.3 $1.12 $1.42 6.9% $55.9 $2.11 $2.80 10.2%
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