BACCK Inc. currently has an EPS of $3.37 and an earnings growth rate of 6 percent. If the benchmark PE ratio is 19, what is the target price four years from now?
EPS four years from now=$3.37*(1+Growth rate)^4
=3.37*(1.06)^4
=4.25454736
PE ratio=Stock price/EPS
Hence expected stock price=4.25454736*19
=$80.84(Approx).
BACCK Inc. currently has an EPS of $3.37 and an earnings growth rate of 6 percent....
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