Question
You are asked to value Netflix's stock using a P/E Model approach. You forecast the EPS next year to be $5.50 and the multiple that
You are asked to value Netflix's stock using a P/E Model approach. You forecast the EPS next year to be $5.50 and the multiple that you use is 20x as you feel a market multiple is warranted. The stock is currently at $100. Based on your forecast and using a required rate of return of 10%, which of the following is true?
Group of answer choices
The stock is overvalued
The stock is fairly valued
.The stock is undervalued
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The Handbook Of Equity Derivatives
Authors: Jack Clark Francis, William W. Toy, J. Gregg Whittaker
1st Edition
0471326038, 978-0471326038
