Exercise

Equity Value Per Price-to-Earnings Multiples

You analyzed the relevant comparable companies and determined that the appropriate P/E multiple to be applied to the subject firm's earnings is 8x (p_eps_multiple). Assuming the firm has an EPS of $1.39 (eps), what is the implied equity value per share of this firm?

Instructions

100 XP

Calculate the implied equity value.

Take Hint (-30 XP)