Question

I'm struggling on this problem and have to put it into excel with formulas.

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.
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Transcribed Image Text: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.
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