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Implied Price

Your analysis suggests that the subject firm has the following metrics: LTM EPS of $1, NTM EPS of $2, and BVPS of $8. You are asked to calculate the implied price for the subject firm, which is equal to the metric multiplied by the appropriate multiple. Assume that the data for the average P/LTM EPS (ltm_p_e), P/NTM EPS (ntm_p_e), and P/BVPS (p_bv) of the comparable companies are stored in the the multiples object.

This exercise is part of the course

Equity Valuation in R

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Exercise instructions

  • Create a vector for the subject firm's LTM EPS ($1), NTM EPS ($2), and BVPS ($8).
  • Calculate the implied price based on each of the three metrics by multiplying the metric by the multiple.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Vector of metrics
metrics <- ___

# Calculate implied values
implied_val <- ___
implied_val
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