Given the information below for Seger Corporation, compute the expected share pr

Question

Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

Year: 2008 2009 2010 2011 2012 2013 Year: 2008 2009 2010 2011 2012 2013 Average Price 56.9 62.8 61.5 59 80.5 95.9 P/E ratio $22.76 $19.56 $15.34 $12.53 $11.42 $11.91 $15.59 EPS 2.5 3.21 4.01 4.71 7.05 8.05 EPS Growth rates 28.40% 24.92% 17.46% 49.68% 14.18% 26.93% CFPS 7.32 8.28 8.74 10.17 11.83 13.12 P/CFPS $7.77 $7.58 $7.04 $5.80 $6.80 $7.31 $7.05 CFPS growth rates 13.11% 5.56% 16.36% 16.32% 10.90% 12.45% SPS 34.8 39.8 39.2 42.7 53.9 61.9 P/S $1.64 $1.58 $1.57 $1.38 $1.49 $1.55 $1.53 P/S growth rates 14.37% -1.51% 8.93% 26.23% 14.84% 12.57% Expected share price using P/E = 15.59(8.05)(1.2693) = $159.296 Expected share price using P/CFPS= 7.05(13.12)(1.1245) = 104.011 159.2965154 Expected share price using SPS = 1.53($61.9)(1.1257) = $106.611 104.011752 A reasonable price range would seem to be $104 to $159 per share 106.6116699

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.