1. Learn
    2. /
  2. Courses
    3. /
  3. Equity Valuation in R

Exercise

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.

Instructions

100 XP
  • 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.