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You are asked to value Sunshine Inc. using the relative valuation method. Sunshine Inc.'s earnings forecast...

You are asked to value Sunshine Inc. using the relative valuation method. Sunshine Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable companies are provided below. What is your estimate for the company's stock price? Round to one decimal place. ​[Hint: Compute the corresponding valuation multiple of the comparables and take simple average across the three comparable companies. Then apply this average multiple to Sunshine Inc.] answerable question reference

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Answer #1

average multiple=((18.3/1.22)+(26.3/1.42)+(55.9/2.80))/3=17.82845

your estimate for the company's stock price=2.44*17.8285=43.50

the above will be answer..

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