You want to value the stock of a company that is not publicly traded. This company has earnings of $4.25 per share, BV of equity of $9.85 share, and CFs to equity of $1.85 per share.- You have the following information on firms that are extremely similar to the firm that you're trying to value: 4. Stock price per share 14.85a BV of equity per sharea 7.25 Earnings per sharea 2.48 CFs to equity share Company per 1.36 AC 8.14 Вa Cа 65.41 6.62 34.96 3.86 36.09 14.23 4.28 Come up with three appropriate estimates of the stock price for your firm of interest.
I'm struggling on this problem and have to put it into excel with formulas.
Image Transcriptionclose
You want to value the stock of a company that is not publicly traded. This company has earnings of $4.25 per share, BV of equity of $9.85 share, and CFs to equity of $1.85 per share.- You have the following information on firms that are extremely similar to the firm that you're trying to value: 4. Stock price per share 14.85a BV of equity per sharea 7.25 Earnings per sharea 2.48 CFs to equity share Company per 1.36 AC 8.14 Вa Cа 65.41 6.62 34.96 3.86 36.09 14.23 4.28 Come up with three appropriate estimates of the stock price for your firm of interest.
Expert Answer
Related Finance Q&A
Q: 6. A company just issued a 15-year bond that has a face value of $1,000 and a coupon rate of 10% Sim...
A: The price of a bond consists present value of all future coupon payments and the redemption payment....
Q: A stock with a beta of 1.5 has an expected rate of return of 20%. If the market return this year tur...
A: Calculation of rate of return on stock:Rate of return on the stock is 3.5%.The market return is 11% ...
Q: A proposed new project has projected sales of $222,000, costs of $96,500, and depreciation of $26,10...
A: The computation of operating cash flow is as follows:
Q: 8) How much will I need to deposit into an account to have $6,500,000 in 10 years earning 5 % compou...
A: We will answer the first question since the exact one wasn’t specified. Please submit a new question...
Q: You are a management trainee in one of the Manufacturing companies based in Johor, Malaysia. The com...
A: The future cash flows and the discount rate are the two factors on which the value of the firm relie...
Q: MMS Corp borrows $1,650,000 today for a new building. The loan is an equal principal payment loan wi...
A: Computation of payment due amount:Hence, the due amount is $20,219.95 or $20,220.
Q: Parents wish to have $110,000available for a child's education. If the child is now 99 years old, ...
A: If P is the amount set aside today, then it's future after year n, in an account offereting annual i...
Q: Using Saudi Arabia as an example. Do you believe that cultural similarities among people can out wei...
A: Yes, i strongly believe that cultural similarities among people can out weight cultural differences ...
Q: Executives at Microsoft are interested to get into the drone delivery business. Since it would take ...
A: (a) Calculation of present values of two options:Answer:Net present values of both options are $40 m...
