Question
You are valuing one share of a small private bank using valuation by comparables. You selected four similar banks, calculated their PE ratios and reported
You are valuing one share of a small private bank using valuation by comparables. You selected four similar banks, calculated their PE ratios and reported them in the table below. What is the value of a share of your private bank if the bank generates $5.8 of earnings per share? (Enter your answer in dollars with 2 decimal places.
Bank P/E Ratio
Wells Fargo 95.6
Citigroup 15.4
Bank of America 20.8
JP Morgan Chase 17.2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
