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You are provided with the following recent information about a company in the FTSE 100. million Extract from income statement Revenue 3,106.2 Operating profit 468.9

You are provided with the following recent information about a company in the FTSE 100.

million
Extract from income statement
Revenue 3,106.2
Operating profit 468.9
Profit for the year attributable to ordinary shareholders 313.5
Extract from statement of financial position
Total assets 1,473.9
Total equity 256.2
Non-current liabilities 755.5
Current liabilities 462.2
Additional information
No of ordinary shares in issue 246.1 million
Market price of each ordinary share 14.95

During the last 5 years:

  • Revenue has on average increased by 9% pa.
  • EPA has increased on average by 6%

Required:

  1. Calculate the market capitalisation / value of the company
  2. Calculate EPS for the company
  3. Calculate the P/E ratio for the company. What does this indicate to investors about the companys current market valuation?
  4. Briefly outline three reasons why the monetary value of net assets in the statement of financial position, differs to the market value of the company.

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