Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Finance

Authors: Kirt C. Butler

3rd Edition

0324177453, 978-0324177459

More Books

Students also viewed these Finance questions