A companys 12-month trailing earnings per share eps are


A company's 12-month trailing earnings per share [EPS] are $4.50,and the EPS are expected to grow 10% annually. If an investor is willing to paya P/E multiple that is no higher than 2.5 times its growth rate, and the stock is currently selling at $100 per share, would this be an acceptable purchase price? Explain and support your answer with numbers.

Solution Preview :

Prepared by a verified Expert
Finance Basics: A companys 12-month trailing earnings per share eps are
Reference No:- TGS01387723

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)