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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:
|
Required:
- Calculate the market capitalisation / value of the company
- Calculate EPS for the company
- Calculate the P/E ratio for the company. What does this indicate to investors about the companys current market valuation?
- 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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