Exercise

Calculating the Relevant Multiple

Assuming the companies selected are reasonably comparable to the subject firm, then using the average (or median) multiple may be a reasonable estimate of the valuation multiple to apply to the subject firm. The P/E and P/B multiples for each of the comparable firms are stored in the pharma object. For this exercise, calculate the average of each of those metrics.

Instructions

100 XP

Print contents of pharma data object.
Calculate the average for all the metrics in pharma (i.e., columns 2 through 4) using the colMeans() command.

Take Hint (-30 XP)