Question
You want to value your gaming stock, Overfuse (OFE), using the P/E ratio of a similar firm, KS Gaming (KSG). KSG has 150,000 shares outstanding,
You want to value your gaming stock, Overfuse (OFE), using the P/E ratio of a similar firm, KS Gaming (KSG). KSG has 150,000 shares outstanding, a per-share price of $23 and total annual earnings of $200,000. Overfuse has 1 million shares outstanding and total annual earnings of $500,000. What is your estimate of the price per share of OFE?
Answer is $8.63. Please show how to arrive at this answer.
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Contemporary Issues In Development Finance
Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi
1st Edition
1138324329, 978-1138324329
