If I want to value a stock using relative valuation with its earnings per share from...
If I want to value a stock using relative valuation with its earnings per share from the last twelve months, which multiple do I need to compute for the company's comparables?
A
Forward PE
B
PEG
C
Trailing PE
D
EV/EBITDA
E
EV/FCFF
Homework Answers
Trailing price-to-earnings (P/E) is a relative valuation multiple that is based on the last 12 months of actual earnings.
Thus the answer is C)
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If I want to value a stock using relative valuation with its
earnings per share from...
1.What is the average Trailing PE of the comparables? Round to one decimal place. 2.What is...
1.What is the average Trailing PE of the comparables? Round to
one decimal place.
2.What is the average Forward PE of the three comparables? Round
to one decimal place.
3.What is the average PEG of the comparables? Round to one
decimal place.
4.If Gamecocks Inc is forecasted to earn $2.2 per share over the
next twelve months, what is its implied price per share using
relative valuation with the comps above? Round to one decimal
place.
Questions 2-5: Suppose you...
1. What is the average Trailing PE of the comparables? Round to one decimal place. 2....
1. What is the average Trailing PE of the comparables? Round to
one decimal place.
2. What is the average Forward PE of the three comparables?
Round to one decimal place.
3. What is the average PEG of the comparables? Round to one
decimal place.
4. If Gamecocks Inc is forecasted to earn $2.2 per share over
the next twelve months, what is its implied price per share using
relative valuation with the comps above? Round to one decimal
place....
Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the fo...
Stock price of $42, earnings of $2.12 per share during the last
twelve months, forecasted earnings of $2.84 over the following
year, and average earnings growth forecast of 12.5% per year for
the next five years. What is this stock's PEG, rounded to one
decimal place?
Example 5.9: Nike's (NKE) current share price (as of close on 10/24/2019) is $91.50 and earnings per share during the trailing twelve months (EPST: Sum of the last 4 quarters' EPS) was $2.68. Yahoo!...
A stock is currently selling for $45. Its earnings per share during the last twelve months...
A stock is currently selling for $45. Its earnings per share during the last twelve months was $3.2. Analysts' average estimate for the company's earnings over the next year is $5.6 per share. Analysts also forecast earnings to grow at a 12% annual rate over the next 5 years. What is this stock's PEG? Round to one decimal place.
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
part a Suppose a company has a stock price of $42, earnings of $2.12 per share...
part a Suppose a company has a stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's Trailing P/E ratio, rounded to one decimal place? part b Same company as above: Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over...
Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings...
Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's PEG, rounded to one decimal place?
Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings...
Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's PEG, rounded to one decimal place?
Assume we want to use a relative valuation approach to value a private firm. We have identified a similar public company...
Assume we want to use a relative valuation approach to value a private firm. We have identified a similar public company that has a PE ratio of 12.3 and a PEG ratio of 1.4. The private firm just reported $977,300 in earnings and analysts think these earnings will grow at a 6% rate going forward. Using the PEG ratio what is the estimated value of the private firm's value?
Suppose a company has a stock price of $42, earnings of $2.12 per share during the...
Suppose a company has a stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's Trailing P/E ratio, rounded to one decimal place?
1.What is the average Trailing PE of the comparables? Round to
one decimal place.
2.What is the average Forward PE of the three comparables? Round
to one decimal place.
3.What is the average PEG of the comparables? Round to one
decimal place.
4.If Gamecocks Inc is forecasted to earn $2.2 per share over the
next twelve months, what is its implied price per share using
relative valuation with the comps above? Round to one decimal
place.
Questions 2-5: Suppose you...
1. What is the average Trailing PE of the comparables? Round to
one decimal place.
2. What is the average Forward PE of the three comparables?
Round to one decimal place.
3. What is the average PEG of the comparables? Round to one
decimal place.
4. If Gamecocks Inc is forecasted to earn $2.2 per share over
the next twelve months, what is its implied price per share using
relative valuation with the comps above? Round to one decimal
place....
Stock price of $42, earnings of $2.12 per share during the last
twelve months, forecasted earnings of $2.84 over the following
year, and average earnings growth forecast of 12.5% per year for
the next five years. What is this stock's PEG, rounded to one
decimal place?
Example 5.9: Nike's (NKE) current share price (as of close on 10/24/2019) is $91.50 and earnings per share during the trailing twelve months (EPST: Sum of the last 4 quarters' EPS) was $2.68. Yahoo!...
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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