Tapley Products is a privately held firm whose forecasted earnings per share (EPS) are $5.8, and...
Tapley Products is a privately held firm whose forecasted earnings per share (EPS) are $5.8, and suppose the average price/earnings (P/E) ratio for a set of similar publicly traded companies is 14.7. Estimate the intrinsic value of Tapley's stock.
(Round your answer to the nearest 2 decimal points. For example, if your answer is $12.345, then enter 12.35 in the answer box.)
Homework Answers
Earning per share =$5.8
Price /Earning =14.7
Price Per Share =14.7*(Earning Per Share)
Price Per Share =14.7*$5.8=$85.26
Estimated Intrinsic Value of Tapley's stock=$85.26
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