Question
You have found the following historical information for the Daniela Company: Year 1 Year 2 Year 3 Year 4 Stock price $49.24 $67.43 $61.19 $67.07
| You have found the following historical information for the Daniela Company: |
| Year 1 | Year 2 | Year 3 | Year 4 | |
| Stock price | $49.24 | $67.43 | $61.19 | $67.07 |
| EPS | 2.59 | 2.65 | 2.82 | 2.81 |
| Earnings are expected to grow at 8 percent for the next year. |
| Required: |
| What is the PE ratio for each year? What is the average PE ratio? Using the company's historical average PE as a benchmark, what is the target stock price in one year? |
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Tidy Finance With R
Authors: Christoph Scheuch, Stefan Voigt, Patrick Weiss
1st Edition
1032389346, 978-1032389349
