Question
You are attempting to value a growth stock using a P/E Multiple Model, utilizing a PEG ratio approach, If a reasonable PEG ratio is 2
You are attempting to value a growth stock using a P/E Multiple Model, utilizing a PEG ratio approach, If a reasonable PEG ratio is 2 and the company in question is expected to grow earnings at around 30% for the next 3-5 years, what is a reasonable P/E for your valuation? Assume that the market multiple is 20x.
Group of answer choices
40x
80x
20x
60x
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New Issues In Financial Institutions Management
Authors: F Fiordelisi, P Molyneux, D Previati
2010th Edition
0230278108, 978-0230278103
