Are shares of Eli Lilly & Company (ticker: U:LLY) currently under- or overpriced? Calculate the average P/E ratio over the last five fiscal years.
Assuming that Eli Lilly maintains this average P/E into the future, determine the price per share using the average EPS estimate for the next fiscal year end. Is this estimate higher or lower than the latest closing price for Eli Lilly?
Since these exercises depend upon real-time data, your answers will change continuously depending upon when you access the Internet to download your data.