A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise multiple is 11.23.  The EBITDA for the company is $20.78 million.  What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise multiple is 11.23.  The EBITDA for the company is $20.78 million.  What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.
 

 

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