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
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